Promotional products and gift items maker Pramara Promotions has decided to launch its maiden public issue on September 1. This would be the second IPO opening on the same day, after Basilic Fly Studio.
The company is planning to raise Rs 15.27 crore via initial public issue of 24.24 lakh shares which comprises only a fresh issue. It has reserved 1.24 lakh shares for the market maker, which is 5.1 percent of the total issue, and the remaining 23 lakh shares will be considered as a net issue.
Further, the net issue will be divided equally between retail investors and high networth individuals who will get 11.5 lakh shares each in the reservation.
It is a fixed price issue. The issue price has been fixed at Rs 63 per share.
Investors can bid for a minimum of 2,000 equity shares and in multiples of 2,000 shares thereafter. Hence, the minimum application size for retail investors would be Rs 1.26 lakh for a single lot (2,000 shares). They cannot invest beyond the same as their investment in IPO restricted up to Rs 2 lakh.
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High networth individuals, who are allowed to invest above Rs 2 lakh, can invest a minimum of Rs 2.52 lakh for 4,000 shares.
The issue, which will close on September 5, will constitute 26.83 percent of post issue paid up equity capital of the company.
The Mumbai-based company is engaged in the business of ideation, conceptualization, designing and manufacturing and marketing of promotional products and gift items for the clients across sectors, such as FMCG, QSR, pharma, beverage companies non-alcoholic and alcoholic, cosmetic, telecom, media and others.
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Pramara Promotions, which helps clients in promoting products and services to their customers, will utilise fresh issue proceeds majorly for working capital requirements amounting to Rs 9.75 crore and the remaining Rs 3.02 crore for general corporate purposes. The entire issue proceeds will be utilised in current financial year.
Promoters Rohit Lamba and Sheetal Lamba hold 94.45 percent shareholding in the company, while the total promoters holding stands at 95.41 percent, and the remaining is held by public shareholders.
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The company will finalise the basis of allotment of IPO shares by September 8 and equity shares will be transferred to demat accounts of eligible investors by September 12.
Its equity shares will debut on the Emerge platform of National Stock Exchange on September 13, as per IPO schedule.
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Fedex Securities is the merchant banker, and Bigshare Services is the registrar to the offer.
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