Amkay Products IPO: Issue subscribed over 32 times on day 1, check subscription status, GMP, and other details

Healthcare products manufacturer Amkay Products initial public offerings (IPO) opened on Tuesday, April 30. The SME issue received 5,35,40,000 applications against the 16,42,000 shares offered, on the first day of subscription.

Amkay Products manufactures, assembles, and distributes a wide array of medical devices, disposables, and healthcare goods, including face masks, alcohol swabs, lancet needles, nebulizers, pulse oximeters and surgeon caps. These products cater to the needs of healthcare centers, hospitals, clinics, nursing homes, and various medical facilities across India. Furthermore, the company is engaged in the branding and promotion of select items including diapers, plastic gloves and suction machines.

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In the fiscal years ending December 31 of 2021, 2022, and 2023, the revenue generated from manufacturing operations was ₹3,020.24 lakh, ₹2,255.89 lakh, and ₹2,224.59 lakh, respectively. Concurrently, revenue from branding and trading operations for the same periods stood at ₹1049.71 lakh, ₹1394.48 lakh, ₹561.83 lakh, and ₹437.71 lakh, respectively.

Amkay Products IPO subscription status

The Amkay Products IPO was subscribed over 32.61 times on the first day of subscription. 

The retail category, which was subscribed 54.15 times, received 4,12,58,000 shares against offered 7,62,000 applications. Meanwhile, the QIB portion received a tepid response, and was subscribed 0.6 times. The QIB category received 24,000 applications against offered 4,34,000 shares offered.

On the other hand, Non Institutional Investors (NII) received 1,22,58,000 shares against offered 4,46,000 shares. The NII portion was subscribed 27.48 times on the first day of bidding.

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Amkay Products IPO details

The SME IPO intends to raise more than ₹12.61 crore through a fresh issue of 22.92 lakh shares.

The healthcare manufacturer has established the price range for its upcoming IPO between ₹52 and ₹55 per share. Investors can bid for a minimum of 2,000 shares and in multiples thereafter.

Hem Securities Limited is the book running lead manager for the Amkay Products IPO, while Bigshare Services Pvt Ltd has been appointed as the registrar for the offering. Hem Finlease has been assigned the role of market maker for the Amkay Products IPO.

The allotment for the Amkay Products IPO is expected to be finalized on Monday, May 6, 2024. The IPO of Amkay Products is slated to be listed on BSE SME, with a tentative listing date scheduled for Wednesday, May 8, 2024.

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Amkay Products IPO GMP

The grey market premium (GMP) for the Amkay Products IPO stands at +45, indicating that shares of the IPO are being traded at a premium of ₹55 in the unofficial market. 

As per data from Investorgain, the lowest GMP recorded for the Amkay Products IPO is ₹0, while the highest is ₹45. It is estimated that the listing price will be ₹100, representing a significant increase of 81.82% compared to the IPO price of ₹55.

The term 'grey market premium' reflects the willingness of investors to pay a price higher than the issue price, indicating strong demand and confidence in the company's prospects.