Sat Kartar Shopping IPO sees 39 times subscription on Day 2

Sat Kartar Shopping IPO

Sat Kartar Shopping's initial share sale continued to attract strong interest from investors on January 13, the second day of bidding. The SME IPO saw a whopping subscription of 39 times despite consistent bearish trend in the equity markets.

The natural wellness solutions provider hit capital markets to raise Rs 33.8 crore via maiden public issue. The offer was opened for subscription on January 10, when it was subscribed 4.5 times.

All kind of investors participated in the offer, bidding for 11.67 crore equity shares against the IPO size of 29.9 lakh shares via 58,760 applications, the subscription data on the NSE showed.

Retail investors remained aggressive even on the second day of bidding, picking 64.08 times their allotted quota. Non-institutional investors bid 44.9 times their reserved portion, while the part set aside for qualified institutional buyers was subscribed 2.35 times.

On January 9, the ayurveda healthcare company raised Rs 9.55 crore from six institutional investors including Pine Oak Global Fund, Zeta Global Funds, Silver Stride India Global Fund, and Saint Capital Fund.

Sat Kartar Shopping, which operates in D2C (direct-to-consumer) segment, selling Ayurveda products directly to consumer through its own D2C website and third-party e-commerce websites, will utilise IPO proceeds for unidentified acquisition, marketing and advertisement, capital expenditure, and investment in technology.

The public issue will close on January 14, while the share allotment will get finalised by January 15.

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Investors can start trading in Sat Kartar Shopping shares effective January 17. Narnolia Financial Services is the sole book running lead manager to the issue.