The initial public offering (IPO) of Gulf Lloyds (India) commenced on Monday, July 20, attracting significant investor interest. The BSE SME IPO, which consists of a fresh issue of 1,819,200 shares, has set its price at ₹100 per share and aims to raise ₹18.19 crore.
Key Details
According to grey market sources, the IPO's grey market premium (GMP) was reported at ₹29, suggesting a potential listing gain of approximately 29% above the issue price. By midday on the first day of subscription, the IPO had been nearly two times oversubscribed, indicating strong demand from investors.
The proceeds from the IPO will primarily be used for loan repayments, capital expenditures for office premises, and working capital requirements, as outlined in the company's red herring prospectus. The retail investor segment has been allocated 864,000 shares, representing about 47.49% of the total issue, while a similar number is reserved for non-institutional investors. The remaining shares will be allocated to market makers.
Background
The allotment date for the shares is expected to be finalized on Thursday, July 23, with successful bidders likely to see the shares credited to their demat accounts by Friday, July 24.
The strong demand for Gulf Lloyds' IPO could indicate a bullish sentiment in the SME sector, potentially influencing investor interest in similar upcoming IPOs. The premium in the grey market may attract further investments in the stock upon its listing.
Investors will watch for the final allotment results on July 23, which will provide clarity on investor participation and demand.