While the non-institutional investors’ (NII) category was oversubscribed 2.28 times, the retail investors’ category was subscribed only 0.72 times at the closing of the Rangoli IPO
The Rs 45.15 crore Rangoli Tradecomm Ltd initial public offering (IPO) closed for subscription on Friday (12 March). The three-day IPO session commenced on 9 March. On the third and final day of the offering, the shares were subscribed 1.50 times by 5 pm.
According to the information available, the public issue was subscribed 0.72 times in the retail investors’ category and 2.28 times in the non-institutional investors’ (NII) category.
On the first day of the issue that is on 9 March, the IPO was subscribed 0.21 times while on the second day (10 March), the bidding received was 0.61 times of the total shares offered. The price band fixed for the issue is Rs 207 per share.
According to the draft red herring prospectus (DRHP), the company has issued 2.18 million shares of which 0.11 million at Rs 207 aggregating to Rs 2.32 crore will be reserved for the market maker. While the remaining 2.07 million worth Rs 42.84 crore will be referred to as a net issue.
The main objective of the IPO is to use the net proceeds for meeting working capital requirements and general corporate purpose.
The networking capital requirement of the company as of March 2020 was Rs 52.02 crore against Rs 9.90 crore from a year-ago period. However, as of September 2020 (the first six months of FY 2020), the net working capital requirement stood at Rs 63.53 crore.
The total revenue of the company for fiscal 2020 stood at Rs 165.44 crore against Rs 3.52 crore a year ago. While the net profit was at Rs 2.11 crore compared to Rs 2.92 crore. Total revenue for six months, ended on September 2020, was at Rs 146.84 crore while net profit was Rs 10.93 crore. The total debt of the company as of September 2020 stood at Rs 44.08 crore.
The lead manager to the IPO is Fedex Securities Pvt Ltd while the registrar is Bigshare Services Pvt Ltd and the shares are proposed to be listed on the BSE SME. BSE SME is a platform at the Bombay Stock Exchange (BSE) for Small and Medium Enterprises (SME).
Rangoli Tradecomm was incorporated in the year 2009 and is currently engaged in the business of trading polymers and textile products. To supply textile and polymer products the company follows both the B2B (business to business) and B2C (business to customer) model.
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