SD Retail IPO Opens — Check GMP, Price, Issue Size And Other Details

SD Retail Ltd. is set to launch its initial public offering (IPO) on Sept. 20. The book-build offer is an entirely fresh issue of 49.6 lakh shares worth Rs 64.98 crore with no offer-for-sale component. 

Here's all you need to know about the SME offering of SD Retail Limited.

SD Retail IPO will be open for subscription for three days from September 20 to September 24.

SD Retail IPO price band has been fixed at Rs 124 to Rs 131 per equity share with a face value of Rs 10 each. Retail investors have to apply for at least 1,000 shares in a lot, taking the minimum investment to Rs 1,31,000. 

Kfin Technologies Limited is the registrar for the SD Retail IPO, while Beeline Capital Advisors Pvt Ltd is the book-running lead manager of the issue. Spread X Securities is the market maker of the public offer.

The allotment of shares in the IPO will be finalised on September 25. Successful bidders will get the credit of shares to their demat accounts on September 26. Refunds for non-allottees will also be initiated on the same day. Shares of SD Retail Ltd. are expected to list on the NSE SME platform, Emerge, on September 27.

The grey market premium (GMP) of SD Retail IPO is Rs 40 as of 02:01 p.m. on Friday, implying a 30.53% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 171 per share.

GMP is not an official price quote for the stock and is based on speculation. 

SD Retail manufactures and retails sleepwear under the brand name 'Sweet Dreams'. Its products cater to men and women across all age groups. The company also offers products in other categories such as loungewear, workout wear, athleisure and work leisure pants. Established in 2004, SD Retail has 237 employees across various departments and another 226 contractual employees as of July 31, 2024. 

Use of Funds and Proceeds

SD Retail plans to use the proceeds of its IPO to fund the capital expenditure for setting up new exclusive brand outlets or EBOs. The funds will also be used for working capital requirements and general corporate purposes.

Financials

The company reported a revenue of Rs 163.28 crore in FY24, marking a 20.33% year-on-year increase from 

Rs 135.68 crore in the previous fiscal. The company’s profit was up by 76.61% YoY at Rs 7.59 crore in FY24, as compared to Rs 4.3 crore in FY23.

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.