Davin Sons IPO GMP Drops As Issue Booked Over 120 Times On Final Day; Check Allotment Date
The grey market premium for Davin Sons IPO dropped to Rs 5 after a day's high of Rs 15. The allotment for the Davin Sons IPO is expected to be finalised on Jan. 7.
Davin Sons Retail Ltd. which launched its initial public offering on Jan. 2 closed for subscription on Monday, Jan. 6. The IPO was subscribed 120.8 times on its final day led by demand from Retail Investors who bid for over 12,49,00,000 shares against the 7,58,000 shares offered.
The SME issue was booked 12.53 times on Friday (Day 2). This follows after the IPO was fully booked on Day 1 led by demand from retail investors.
The grey market premium for Davin Sons IPO dropped to Rs 5 after a day's high of Rs 15, taking the estimated listing price to Rs 60 against the upper price band of Rs 55. The GMP had remained constant at Rs 15 since the issue opened for subscription.
The company, which manufactures and retails various garments, aims to raise Rs 8.78 crore by issuing shares in the primary market.
Here's all you need to know about Davin Sons Retail IPO.
Davin Sons IPO Subscription Status: Day 3
The IPO was subscribed 120.8 times on Monday
Non-Institutional Buyers: 66.1 times
Retail Investors: 164.78 times
Davin Sons IPO: Key Details
Davin Sons IPO consists of an entirely fresh issue of 15.96 lakh shares, offered at a fixed price of Rs 55 with a face value of Rs 10 apiece.
As per the company's prospectus, of the 15,96,001 shares offered -- 7,58,000 (47.49%) were reserved for Non-Institutional Buyers and 7,58,000 (47.49%) for Retail Investors.
Retail investors may bid in the IPO with a minimum lot size of 2,000 shares, totalling an investment of Rs 1,10,000 per application.
Davin Sons Retail Ltd. has named Navigant Corporate Advisors Ltd. as the sole book-running lead manager for its issue whereas Kfin Technologies Ltd. is its registrar. Aftertrade Broking Pvt. is the market maker for Davin Sons IPO.
Davin Sons IPO GMP Today
The grey market premium for the Davin Sons Ltd. shares was Rs 5 at 7:59 p.m. on Jan. 6, 2025. As per Investorgain, Davin Sons Retail Ltd. shares are likely to list at Rs. 60 apiece indicating an estimated listing gain of 9.09%.
Davin Sons IPO saw a lukewarm response in the unlisted market ahead of its launch, with the GMP indicating a flat listing. The GMP climbed to Rs 15 on Thursday after the SME issue received a good response from the investors.
Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.
Davin Sons IPO Subscription Status: Day 2
The IPO was subscribed 12.53 times on Friday
Non-Institutional Buyers: 3.03 times
Retail Investors: 22.03 times
Davin Sons IPO Allotment And Listing Date
The allotment for the Davin Sons IPO is expected to be finalised on Tuesday, Jan. 7. This will be followed by the initiation of refunds for the non-allottees on Jan. 8. Credit of shares into the demat account of successful bidders in Davin Sons IPO will also be done on Jan. 8.
Shares of Davin Sons Retail Ltd. will list on BSE SME with an expected listing date as Thursday, Jan 9.
Davin Sons Retail: Business And Financials
Davin Sons Retail Ltd. is engaged in the business of manufacturing and designing a range of high-quality readymade garments for different brands. Its businesses can be broadly classified into two verticals – manufacturing of readymade garments on a job work basis and distribution of FMCG products.
The company, incorporated in March 2022, operates in multiple states including Haryana, Delhi, Punjab, Rajasthan, Gujarat, Bihar, and Chhattisgarh.
Use Of Proceeds
Davin Sons Retail Ltd. has proposed to use the net proceeds from the IPO to fund its capital expenditure on the purchase of a warehouse and other working capital requirements. A portion of the funds will be used for general corporate purposes.
Financials
Davin Sons Retail Ltd. posted a revenue of Rs 6.3 crore in the first half of the ongoing financial year with a net profit of Rs 73.59 lakh. The company has shown strong growth momentum over the last couple of years, with revenues rising 242% year-on-year to Rs 13.3 crore in FY24 from Rs 3.91 crore in FY23.
The company's net profit also rose sharply by 190% to Rs 1.64 crore in FY24 from Rs Rs 56.62 lakhs in FY23.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
