Grill Splendour Services IPO: Issue oversubscribed on day 3 led by retail investors; check GMP, subscription status.

Grill Splendour Services IPO has opened for subscription on Monday, April 15 and will end close on Thursday, April 18. The IPO price band has been set at ₹120 per share, with a face value of ₹10. 1,200 shares make up the IPO lot size for Grill Splendour Services Ltd.

According to the prospectus, the company is a chain of upscale bakeries and patisserie with 17 retail locations, a centralised manufacturing plant, and a number of corporate clients. The chain has locations all throughout Mumbai. Twelve of these 17 retail sites are under their ownership, and five of them are run under the franchisee model (owned by the franchisee and run as a company).

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In November 2019, Grill Splendour Services Private Ltd. was founded as a hospitality company to acquire the bakery and confectionery business from WAH Restaurants Private Limited along with the trademark Birdy's Bakery and Patisserie.

Birdy's was first opened as "Birdy’s by Taj." It was first sold to WAH Restaurants Private Limited, and then the firm bought it from them in accordance with the conditions of the acquisition agreement that was previously specified. The company's primary objective has been to restore the brand's quality and shine.

Also Read: Grill Splendour Services Limited IPO: Price band set at ₹120 apiece; check GMP, issue details, more

Grill Splendour Services IPO subscription status

Grill Splendour IPO subscription status is 8.68 times, on day 3.

The retail portion has been subscribed 12.78 times, and NII portion has been booked 4.59 times.

The company has received bids for 1,13,14,800 shares against 13,03,200 shares on offer, according to data on chittorgarh.com.

Grill Splendour IPO subscription status was 2.16 times, on day 1, and the issue was booked 4 times on day 2. 

Grill Splendour Services Ltd IPO details

About ₹16.47 crore is the total worth of the Grill Splendour Services IPO, which comprises of a new issue of 1,372,800 equity shares with a face value of ₹10. There is no offer-for-sale component.

The promoters of the firm are Srinidhi V. Rao, Vandana Srinidhi Rao, and Vivek Vijaykumar Sood.

The net proceeds from the new issue are expected to be used for the following purposes: paying off some outstanding loans that the company has taken out ( ₹11.15 crore), financing additional working capital requirements ( ₹1 crore), general corporate purposes ( ₹3.95 crore), and offer expenses ( ₹37.36 lakhs).

Bigshare Services Pvt Ltd is the registrar for the Grill Splendour Services IPO, while Inventure Merchant Banker Services Pvt Ltd is the book running lead manager. Rikhav Securities is the market maker for Grill Splendour Services IPO.

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Grill Splendour Services IPO GMP today

Grill Splendour Services IPO GMP or grey market premium is +8. This indicates Grill Splendour Services share price were trading at a premium of ₹8 in the grey market, according to investorgain.com.

After taking into consideration the upper end of the IPO pricing range and the existing premium on the grey market, Grill Splendour Services shares are anticipated to list at a price of ₹128 per share, which is 6.67% higher than the IPO price of ₹120.

Today's IPO GMP indicates higher and anticipates a solid listing based on the activity of the grey market over the past nine sessions. According to analysts at investorgain.com, the lowest GMP is ₹0 and the maximum GMP is ₹8.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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Grill Splendour Services IPO Review 

Contributing editor at Chittorgarh Dilip Davda noted that the firm sells cakes and pastries, food, beverages, and deserts. It reported massive profits starting in FY23, or the pre-IPO years, albeit this seems to have been a ruse to get high values. The issue is priced aggressively when considering its annualised FY24 profits. An extended gestation time for migration is indicated by a small paid-up equity capital post-IPO. There's no harm in passing on this costly wager.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.