Labelkraft Technologies IPO Day 3: Issue subscribed 53x, check GMP signal
1 min read . Updated: 15 Mar 2023, 11:07 PM IST
Premium- This week's IPO for Labelkraft Technologies began on March 13 and runs until March 15. 8.64 lakh shares are being offered at the set price band of Rs. 55 each in order to raise Rs. 4.75 crore.
This week's IPO for Labelkraft Technologies began on March 13 and runs until March 15. 8.64 lakh shares are being offered at the set price band of Rs. 55 each in order to raise Rs. 4.75 crore. The minimum market lot for the Labelkraft Technologies IPO is 2000 shares with an application fee of ₹110,000 for a retail investor. Labelkraft Technologies IPO which is to list on BSE comes with a retail quota of 50%, and NII of 50%. The allotment for Labelkraft Technologies' initial public offering (IPO) will be finalised on March 20, 2023, and the allocated shares will be deposited by March 22, 2023 to the demat account of subscribers.
The Labelkraft Technologies IPO was subscribed 53.42 times on March 15, 2023, at 2:00 PM, Day 3 of the subscription period. In the retail category, the public issue was subscribed 59.84 times, and in the NII category, 46.84 times. The number of shares bid for NII category was 1,92,06,000 shares against the number of shares offered of 4,10,000 shares whereas the number of shares bid for the retail category was 2,45,34,000 shares against the number of shares offered of 4,10,000 shares. On Day 2, the issue was subscribed 8.69 times, the retail category was subscribed 13.68x and NII category was subscribed 3.69 times whereas on Day 1, the issue was subscribed 2.59 times, the RII category was subscribed 3.94x and NII category was subscribed 1.23x.
The latest GMP as of March 15th 2023 07:40 PM was tracked at ₹6 from the market watchers. Considering the issue price of ₹55, the listing price premium for the Labelkraft Technologies SME IPO was tracked today at a level of ₹61 (cap price of IPO + latest GMP), hence the expected premium currently stands at 10.91% upside.
A R Ramachandran, Co founder & Trainer- Tips2trades said “Even though Labelkraft Technologies caters to several industry segments including FMCG, based on current PE multiples of more than 60 coupled with an overall bearish market sentiment, the IPO looks overpriced. Investors should wait for the listing and a subsequent dip in the stock price to re-enter at better levels."
Sridhar Aiyangar Senior Banker Baharain said Labelkraft is a very small company trading at a P/e of 63. With the m-cap of only ₹18 crores, Labelkraft will be very illiquid given the small float, hence the IPO can be avoided.
