SSMD Agrotech India IPO undersubscribed but QIB portion fully booked on day 1

SSMD Agrotech India IPO News

Agro-food products manufacturer and trader SSMD Agrotech India's initial public offering was undersubscribed, but the portion set aside for qualified institutional buyers was fully booked on November 25, the first day of bidding.

The company owned by Delhi-based House of Manohar is raising Rs 34.08 crore via initial public offering (IPO), which comprises only fresh issue with no offer-for-sale component. The price band for the offer is Rs 114-121 per share.

Investors picked 17.77 lakh shares on Tuesday against the offer size of 28.17 lakh shares via 681 applications. Qualified institutional buyers bought 2 times their allotted quota, while the parts reserved for retail and non-institutional investors were booked 86 percent and 40 percent, respectively.

SSMD Agrotech India has revised its price band from Rs 114-120 per share as well as changed the IPO opening-closing dates from November 24-26 reported earlier.

The company that operates its business of manufacturing, trading, and repacking of agro-food products under four primary sub-brands - Manohar Agro, Super SS, Delhi Special, and Shri Dhanlaxmi - will utilise IPO proceeds for its working capital requirement, and repayment of certain borrowings.

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Further, the IPO funds will also used for setting up of new D2C dark store factories, purchase of machinery for namkeen plant, and the remainder for general corporate purpose.

The IPO subscription will remain open till November 27. SSMD Agrotech India will finalise IPO share allotment by November 28, followed by listing of its equity shares on the BSE SME effective December 2.

3Dimension Capital Services is acting as the sole merchant banker for the SSMD Agrotech India IPO.