Arvind and Company lists at 77% premium over IPO price on NSE SME

Through the IPO, Arvind and Company Shipping Agencies raised Rs 14.74 crore.

The stock of Arvind and Company Shipping Agencies made a stellar debut, listing at a 77.77 percent premium over the IPO price on October 25. The stock opened at Rs 80 against an issue price of Rs 45 on the NSE SME platform.

Prior to the listing, the grey market premium was at Rs 18, implying a listing price of Rs 63. Through the IPO, the company raised Rs 14.74 crore. The offer was entirely a fresh issue of 32.76 lakh shares and there was no offer-for-sale component.

The issue received a good response from investors as it was subscribed 359.62 times. Retail investors bought 321.96 times the allotted quota, while the portion set aside for high net-worth individuals was subscribed 436.15 times.

Arvind and Company Shipping Agencies will spend Rs 11.02 crore for the capital expenditure towards purchasing barges and Rs 1.82 crore for general corporate purposes. The remaining funds, Rs 1.9 crore, will be used for public issue expenses.

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The price for the issue which opened on October 12 and closed on October 16, was fixed at Rs 45. In the financial year 2023, profit increased 247 percent to Rs 3.47 crore, compared to Rs 1 crore in the previous year, and in the same period, revenue from operations jumped 176.6 percent to Rs 7.11 crore, from Rs 2.57 crore in the previous fiscal.

Arvind and Company earn revenue majorly from its two major business verticals - chartering of barges and hotel and hospitality. As of May 2023, it has five barges which are used by coastal transporters to transport their goods or equipment.

Under the hospitality business vertical, it has a portfolio of two hotels namely Hotel Millennium Plaza, and Hotel 999 in Jamnagar, Gujarat, which started contributing in the current financial year FY24.