Shri Balaji Valve Components lists at ₹190, premium of 90% to IPO price

Shri Balaji Valve Components share price made a strong debut on the bourses today, January 03, 2024, as the stock got listed at ₹190 apiece on BSE SME, a premium of 90% to the issue price of ₹100. The stock surged further to hit an intraday high of ₹199.50 apiece.

The ₹21.60 crore SME IPO was open for subscription between December 27, and December 27, 2023, at a price band in the range of ₹95–100 per share. The IPO is a completely fresh issue of 2,160,000 equity shares.

Also Read: Shri Balaji Valve Components IPO allotment finalised: Latest GMP, here's how to check allotment status

The issue was overall subscribed to 276 times. The issue received a stellar response from retail investors whose portion set was subscribed to 169.95 times and a solid response from non-institutional buyers whose portion set was subscribed to 799.70 times, according to data on Trendlyne. The qualified institutional buyers (QIBs) portion was subscribed to 70.04 times.

The company plans to use the net proceeds from the issue for general corporate purposes, working capital requirements, and financing capital expenditures for the installation of additional plant and machinery.

Also Read: 2023 in review: SME IPOs set a record-breaking year with 179 listings, will the boom continue in new year?

About Shri Balaji Valve

Shri Balaji Valve Components is engaged in the business of manufacturing ready-to-assemble valve components catering to the manufacturing of the valves, which are used in different industries and in different sizes depending on the customer’s specifications. Currently, the company is operating from its two manufacturing facilities located in Pune, Maharashtra.

Also Read: IPOs in India: Are there cycles or windows for public issues?

During the last 3 years, the company has exported its valve components to different countries, namely Dubai, Germany, Singapore, Taiwan, Italy, South Africa, USA, United Kingdom, Qatar, & Pennsylvania, according to the company's RHP report. 

Shri Balaji Valve Financials

The company reported revenue of ₹1,616.49 lakhs in FY21, which improved to ₹3,906.05 lakhs in FY22 and further to ₹6,294.10 lakhs in FY23. In FY21, the company reported a net loss of ₹3.22 lakhs, marking a turnaround in FY22 with a net profit of ₹153.47 lakhs. The momentum persisted, and in FY23, the net profit further escalated to ₹643.15 lakhs.

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