The IPO of Rajnandini Fashion India will open for subscription on Tuesday, with grey market activity indicating a modest premium ahead of the SME issue. According to market trackers, the IPO was commanding a grey market premium (GMP) of around 10% ahead of opening.
Based on the upper price band of Rs 63, the GMP implies a potential listing price of around Rs 69-70 per share in the unofficial market. The BSE SME issue aims to raise around Rs 18.2 crore through an entirely fresh issue of 28.9 lakh equity shares.
The IPO will open for subscription on May 26 and close on May 29. The allotment is expected to be finalised on June 1, while the shares are scheduled to list on the BSE SME platform on June 3. The company has fixed the price band at Rs 59-63 per share.
Investors can bid for a minimum of 2,000 shares. Retail investors will have to apply for at least two lots or 4,000 shares, translating into a minimum investment of Rs 2.52 lakh at the upper end of the price band.
For HNI investors, the minimum application size has been fixed at three lots or 6,000 shares amounting to Rs 3.78 lakh.
Ahead of the IPO opening, the company raised around Rs 5.15 crore from anchor investors on May 25.
Rajnandini Fashion India operates in the women’s apparel segment and is engaged in designing, manufacturing and selling ethnic and casual wear products through both online and offline channels. The company primarily focuses on women’s fashion categories and caters to growing demand in the organised apparel segment.
The IPO proceeds are expected to be used for working capital requirements and general corporate purposes. The issue comes amid continued investor participation in SME IPOs despite volatile broader market conditions.
Seren Capital is the book-running lead manager to the issue, while Bigshare Services is acting as the registrar. Giriraj Stock Broking is the market maker for the IPO.
