Milky Mist Dairy Food made a strong debut on the stock exchanges on Tuesday, with its shares listing at Rs 165 per share on the BSE, an 18% premium over its issue price of Rs 140.
The listing was better than what the grey market had indicated ahead of the debut. The latest grey market premium (GMP) for the Milky Mist IPO stood at Rs 19.70, which had suggested an estimated listing price of around Rs 159.70, or a 14.07% gain over the issue price.
The actual listing at Rs 165 means investors who received shares in the IPO saw a gain of Rs 25 per share at the time of listing.
The positive debut comes after strong demand for the IPO during the three-day bidding period.
The overall by the time bidding closed on August 13. The retail portion was subscribed 8.86 times, while qualified institutional buyers (QIBs) subscribed 164.03 times. The non-institutional investor (NII) portion was subscribed 36.75 times.
The IPO had a price band of Rs 135-140 per share and the final issue price was fixed at the upper end of the band at Rs 140.
For retail investors, the minimum application was for 107 shares, taking the minimum investment to Rs 14,980 at the upper price band.
The was a Rs 1,553 crore public issue.
The issue comprised a fresh issue of 10.20 crore shares worth Rs 1,428 crore and an offer for sale (OFS) of 0.89 crore shares worth Rs 125 crore.
The IPO opened for subscription on August 11 and closed on August 13. The allotment was finalised on August 14, ahead of the stock market debut on August 18.
JM Financial was the book-running lead manager for the issue, while Kfin Technologies was the registrar.
At the BSE listing price of Rs 165, an investor allotted one lot of 107 shares would see the value of the investment rise to Rs 17,655 from the issue cost of Rs 14,980.
That translates into a notional gain of Rs 2,675 per lot at the listing price.
However, the listing price is only the starting point for the stock’s journey on the exchanges. Investors will now track how the shares perform after listing and whether the company can sustain the growth expectations that drove strong demand for the IPO.
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