Shanthala FMCG Products marked a robust market debut on November 3, opening at an impressive 18.6 percent premium over the IPO price. The stock commenced trading on the NSE SME platform at Rs 108, a significant surge from the issue price of Rs 91.
By 1:15 pm, the stock continued its upward trajectory, trading at Rs 105.25, reflecting a substantial 15.6 percent increase from the issue price. Shanthala FMCG Products had recently concluded its initial public offering (IPO), generating a total of Rs 16.07 crore through the issuance of 17.66 lakh fresh shares. The IPO, which opened for subscription on October 27 and closed on October 31, witnessed strong investor interest, with a subscription rate of 3.91 times.
The net proceeds from the IPO will be utilized to meet additional working capital requirements and for various corporate purposes, fueling the company’s expansion plans.
A noteworthy development resulting from the IPO is the reduction in the promoters and the promoter group’s stake in the company, which now stands at 57.01 percent, down from 77.44 percent before the IPO. Shanthala FMCG Products’ successful market debut and strong investor response indicate a positive market sentiment and augur well for the company’s future growth prospects.
