Essen Speciality Films IPO Opens Today, GMP Jumps Ahead of Share Allotment

Essen Speciality Films IPO is a SME IPO of 6,199,200 equity shares of the face value of Rs 10 aiming to raise up to Rs 66.33 Crores via public market. The IPO opens on June 23, 2023, and will be closed on June 27, 2023. The company has fixed the price band of the issue between Rs 101 to Rs 107 per share. An offer for sale (OFS) of 15 lakh shares is included in Essen Speciality Films' IPO along with a fresh issuance of 46.99 lakh shares. The company's promoters are Pallav Kishorbhai Doshi, Khushboo Chandrakant Doshi, and Karishma Rajesh Doshi who will take part in OFS of Essen Speciality Films IPO.

The company has set aside 35% of the equity shares for the retail category, 15% of the offer for non-institutional investors (NII), and 50% of the net offer for qualified institutional buyers (QIB). The lot size for the issue is 1,200 shares, hence retail investors will require a minimum subscription amount of Rs 128,400 for Essen Speciality Films IPO.

GYR Capital Advisors Pvt. Ltd. is the book-running lead manager, while Bigshare Services Pvt. Ltd. is the registrar to the Essen Speciality Films IPO. The basis of share allotment will be announced on July 3. On June 6, the company's shares are most likely to be listed on the NSE SME platform.

According to market observers, Essen Speciality Films' latest grey market premium (GMP) as of June 23, 2023, 2:58 PM, was Rs 44. The expected listing price for the Essen Speciality Films SME IPO is Rs 151 (cap price plus today's GMP), taking the upper end of the pricing band of Rs 107 into consideration. Therefore, on the listing day, it is anticipated that the stock will be listed at a healthy premium of 41.12% over its issue price.

Should You Bid for Essen Speciality Films IPO?

Nirav Karkera, Head of Research, Fisdom said "The company's strong market position is reinforced by its broad client network, which includes reputable multinational modern trade retailers like IKEA, Walmart, Kmart, Bed Bath, and others. Additionally, its solid parentage network, a wide range of products, and the government's dedicated efforts to drive the plastic industry's value from 3 trillion to 10 trillion in the next 4-5 years further enhance its appeal within the sector. Moreover, considering the current fair value of its offerings, there is a potential expectation for the company to list at a premium."

A R Ramachandran, Co-founder & Trainer - Tips2trades said "Lower debt coupled with decent valuation in terms of ROE & profit growth makes the Essen Speciality Films IPO a decent buy for listing gains."

Disclaimer

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