Italian Edible IPO subscribed over 15 times on second day, retail portion sees strong demand

Italian Edible Limited initial public offerings (IPO) opened for subscription on February 2, 2024 and will close on February 7, 2024. So far, the small and medium enterprise (SME) IPO has been subscribed over 15.08 times.

Italian Edibles Limited IPO price band has been set at ₹68 apiece. The IPO lot size consists of 2,000 shares. Investors can bid for a minimum of 2,000 shares and in multiples thereof. The issue price is 6.8 times the face value of ₹10.

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“We believe that listing will enhance our corporate image and visibility of brand name of our Company. We also believe that our company will receive the benefits from listing of equity shares on the Emerge Platform of NSE. It will also provide liquidity to the existing shareholders and will also create a public trading market for the equity shares of our company," said the company in its DRHP.

Italian Edible IPO subscription status

Italian Edible IPO has received bids for 6,00,38,000 shares against 37,20,000 shares on offer on the second day of bidding, according to data from NSE.

Italian Edible IPO retail investors' portion received bids for 4,96,64,000 shares against 18,60,000 shares on offer for this segment. Meanwhile, the non-institutional investors' portion received bids for 94,20,000 shares against 18,60,000 on offer for this segment.

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On the first day, the issue was subscribed over 4.42 times. The retail category and NII category received applications over 7.50 times and 1.33 times, respectively.

Italian Edible IPO details

Italian Edibles IPO comprises a fresh issue of 39,20,000 equity shares aggregating to ₹26.66 crore. This is a completely a fresh issue, and there is no offer-for-sale component.

The company intends to use the net funds from the offering for the following purposes: setting up the planned manufacturing unit; paying back certain loans; covering increased working capital needs; and general corporate expenses.

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The promoters of the company are Ajay Makhija and Akshay Makhija.

Italian Edibles IPO's sole book running lead manager (BRLM) is First Overseas Capital Ltd, and the registrar to the issue is Bigshare Services Pvt Ltd.

The allotment for the Italian Edibles IPO is expected to be finalized on Thursday, February 8, 2024. Italian Edibles IPO will list on NSE SME with tentative listing date fixed as Monday, February 12, 2024.

The company's draft red herring prospectus (DRHP) states that for the past 14 years, the Italian Edibles has been making delicious candy products. The brand name "Ofcourse" is used to market the company's confectionery items. The company offers a variety of confections to its consumers, including candy, jelly candies, multi-grain puff rolls, lollipops, milk paste, chocolate paste, and Rabdi [Meethai Sweet]. The company's two functioning production units are situated in Madhya Pradesh's Gramme Palda and Prabhu Toll Kanta.