Strong market debut: KV Toys India shares list at 34% premium to SME IPO price

KV Toys India IPO

The shares of KV Toys India made a strong market debut on December 15, listing at Rs 320 per share on the BSE SME platform. This marks a premium of nearly 34 percent over the IPO price of Rs 239 per share.

The shares then fell 5 percent to hit the lower circuit at Rs 304 apiece. The company's market capitalization stood at around Rs 191 crore, as seen at 11.15 am.

Listing premium vs grey market estimates:

The listing premium has however missed grey market estimates. Ahead of listing, the unlisted shares of the company were trading with nearly 54 percent grey market premium (GMP) over the IPO price, according to data on Investorgain.

According to IPO Watch, the unlisted shares of the company were trading with more than 63 percent GMP over the IPO price, ahead of their market debut.

KV Toys India IPO:

K V Toys India launched its IPO earlier this month to raise Rs 40.15 crore at a price band of Rs 227-239 per share. The initial public offering of the plastic-moulded and metal-based toys maker saw strong investor interest during its three days of public bidding between December 8 and December 11, being subscribed over 323 times its offer size.

All categories of investors provided strong support to the issue with retail investors picking 376.41 times their allotted quota. The parts set aside for non-institutional investors, and qualified institutional buyers were subscribed 355.8 times, and 193.25 times, respectively.

K V Toys India operates on a contract manufacturing model through exclusive partnerships with 11 OEM’s facilities. It intends to utilise Rs 20.9 crore of IPO proceeds for working capital requirements, Rs 11.7 crore for repayment of debt, and the remainder funds for general corporate purposes.

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