Investors seem to be gung-ho on the CPS Shapers IPO as the public issue has garnered bids for 14.20 crore equity shares against offer size of 6 lakh shares, resulting in to a massive 236.67 times subscription on August 31, the final day of bidding.
Retail investors looked very aggressive in the bidding, as they have bought 301.02 times the portion set aside for them, while high net worth individuals have bid 198.27 times the allotted quota.
The maiden public issue was subscribed 60 times till August 30. It was opened for bidding on August 29.
The first mover advantage, healthy financial performance, and reasonable valuations compared to peers mentioned by the company may be some of reasons behind robust subscription to the IPO. The company compares itself with listed entities like Page Industries, Arvind, Lux Industries, Dollar Industries and KPR Mill.
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The shapewear maker intends to raise Rs 11.10 crore from public issue of 6 lakh shares at a price of Rs 185 per share. Of the total issue, 31,200 shares are reserved for the market maker and the remaining 5,68,800 equity shares are divided amongst retail investors and high net-worth individuals with equal ratio, i.e. 2,84,400 shares each.
CPS Shapers, which is engaged in the business of manufacturing shapewear for men and women with a Dermawear brand, will utilise issue proceeds for the purchase of plant & machinery, commercial vehicles, and solar power systems.
Further, the company is going to upgrade its existing IT software as well as repay debts through IPO proceeds. The balance IPO money will be used for working capital requirements and general corporate purposes.
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Its product portfolio, which is distributed by e-retail and offline model, currently includes saree shapewear, mini shaper, sports bra, all mini corset, tummy reducer, all zenrik, slimmer, active pants, denim, mask and other shapewears.
With a manufacturing facility in Uttar Pradesh, and two warehouses (in Maharashtra and Tamil Nadu), CPS Shapers recorded healthy financial performance with profit in FY23 increasing by 57 percent on-year to Rs 2.46 crore and revenue rising 38 percent to Rs 36.96 crore compared to previous year.
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