Neelam Linens And Garments IPO Subscribed Over 90 Times On Final Day; Check GMP

The initial public offering of Neelam Linens and Garments (India) Ltd. opened for subscription on Friday and was subscribed 2.72 times on the opening day. The SME IPO was subscribed 8.90 times on the second day of bidding on Monday.

The bidding window for the Neelam Linens and Garments IPO closed on Tuesday evening.

The book-built offer is an entirely fresh issue of 54.18 lakh shares worth Rs 13 crore. Those looking to invest in the NSE SME IPO must check out the key details below before making a decision: 

Neelam Linens and Garments (India) Ltd. set the issue price band in the range of Rs 20 to Rs 24 apiece. Retail investors could bid in Neelam Linens and Garments IPO with a minimum lot size of 6,000 shares, totalling an investment of Rs 1,44,000. 

Allotment of shares in the NSE SME IPO is set to be finalised on Nov. 13. Shares of Neelam Linens and Garments Ltd. are likely to be listed on Nov. 18 on the NSE SME platform, Emerge.

Neelam Linens and Garments (India) Ltd. has appointed Expert Global Consultants Pvt. as the sole book-running lead manager for the issue. Purva Sharegistry India Pvt. is the registrar, and Globalworth Securities Ltd. is the market maker for the IPO. 

The IPO was subscribed 91.97 times as of 6:20 p.m. on Tuesday.

• Qualified institutional buyers: 15.40 times.

• Non-institutional investors: 273.47 times.

• Retail investors: 57.82 times.

Neelam Linens and Garments IPO's grey market premium was Rs 10 as of 8:00 p.m. on Nov. 12, according to InvestorGain. Going by the current GMP trend, shares of the company are slated to list at Rs 34 apiece.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Neelam Linens and Garments Ltd. is a soft home furnishings company specialising in the processing, finishing and supply of bedsheets, pillow covers, duvet covers and other related products primarily for discounted retail outlets.

It has two manufacturing units in Maharashtra's Bhiwandi and Thane.

Neelam Linens and Garments Ltd. plans to use the money raised via the public issue to purchase embroidery machines for expansion. A portion of the proceeds will also be used for repayment of the company’s outstanding borrowings and general corporate purposes.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.