Sahaj Fashions made a lacklustre debut on NSE Emerge at Rs 31 against its issue price of Rs 30 and lost over 4 percent to Rs 29.55 by 10:15am on September 6.
The company had launched its public issue on August 25 to raise Rs 13.96 crore. The offer was largely a fresh issue by the company, with only Rs 53 lakh as offer-for-sale.
The tepid listing came despite the issue receiving bids for 3.42 crore equity shares, which was 7.7 times higher than the IPO size. Retail investors were aggressive, buying 11.7 times the portion kept reserved for them.
The Rajasthan-based polyester-and-cotton-polyster-blended fabrics maker will use the issue proceeds mainly for working capital requirements and repaying debt. The remaining amount will be used for general corporate purposes and offer expenses.
For the year ended March 2023, the company's revenue grew 4.63 percent year-on-year to Rs 91.01 crore. In FY20, the company's revenue was higher at Rs 99.33 crore. Its profit after tax jumped multifold to Rs 2.89 crore in FY23 from Rs 43 lakh a year ago.
The company reported net margins of over 3 percent only in the current year, whereas in the previous years, the net margins were under 1 percent.
No analyst covered this IPO.
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