The stock of Fonebox made an impressive debut, listing at a 185.7 percent premium over the IPO price, on February 2 and opened at Rs 200 against the issue price of Rs 70 on the NSE SME platform.
Ahead of the listing, Fonebox shares were trading at a 185 percent premium in the grey market, which is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.
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The offer was subscribed 659 times with the retail portion getting booked 886 times. The public offer opened for subscription on January 25 and closed on January 30. The price band for the issue was fixed at Rs 66-70 per share. Through the IPO, the company raised Rs 20.37 crore. It was entirely a fresh issue of 29.1 lakh shares.
The promoters of the company are Manishbhai Girishbhai Patel, Jigar Lallubhai Desai, Parth Lallubhai Desai, Jigneshkumar Dashrathlal Parekh and Amitkumar Gopalbhai Patel. Beeline Capital Advisors was the book-running lead manager, Kfin Technologies was the registrar and Spread X Securities was the market-maker for the issue.
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For the year ended March 2023, the company's revenue from operations stood at Rs 195.8 crore, a significant jump of over 100 percent when compared to the same period previous year, when the company reported a revenue of Rs 90.9 crore. Its net profit stood at Rs 2.19 crore for the year ended March 2023 as against Rs 19.2 lakh a year back.
The issue proceeds will be utilised to meet working capital requirements, pay public issue expenses, and the rest will be used for general corporate purposes.
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Fonebox Retail, which is also known as Fonebook, is a multi-brand retailer of smartphones and accessories from manufacturers such as Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG, and Micromax.
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