SME IPO listing: Hemant Surgical Industries share price rises 100% on market debut; should you buy or hold?
Hemant Surgical Industries' stock soared 100% on its market debut on BSE, listing at a premium of 90% against the SME IPO issue price. The company's stock closed at ₹179.55 ($2.41), up 99.5% from ₹90 per share. Hemant Surgical's market cap is around Rs1.87bn.
PremiumMedical equipments manufacturer, Hemant Surgical Industries on its market debut skyrocketed by 100% on BSE. The company's stock is listed at a premium of 90% against the SME IPO issue price. The company launched its public offer last month on BSE under SME category. The IPO had received oversubscription with strong demand from non-institutional and retail investors.
On BSE, Hemant Surgical's stock price closed at ₹179.55 apiece, up by ₹89.55 or 99.50%. The current price level is the new 52-week high and is also the 5% upper circuit.
Hemant Surgical got listed at a premium of 90% to ₹171 on BSE, compared to the SME IPO issue price of ₹90 per share.
Compared to the listing price, the stock closed at 5% upside on the exchange.
At present, Hemant Surgical's market cap is around ₹187.45 crore.
The stock is listed on BSE in the list of ''MT'' Group Securities.
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What should investors do?
Divam Sharma- Founder at Green Portfolio PMS said, "We would suggest IPO investors to book profits in Hemant Surgicals. The euphoria of SME is enabling good listing gains for IPO allottees. Investors should try to book profits when they see such significant listing gains."
Sharma added, "The company has to now show significant growth with the capital that they have raised to justify the PE multiples of above 25 times based on FY22-23 numbers. We have opportunities available at lower valuations in the broader markets."
Hemant Surgical is in the business of manufacturing, importing, assembling, and marketing a comprehensive portfolio of medical types of equipment and disposables. The company imports its products from countries like Japan, China, France, and Australia.
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The company launched its SME IPO from May 24 to May 26. The price band for the issue was at the lower band of ₹85 per share and the upper band of ₹90 per share.
On the last day of the IPO, Hemant Surgical's public offer oversubscribed by 139.70 times with strong buying from non-institutional investors (NII) and retail individual investors (RII) as the portion reserved for these two categories subscribed by 203.26 times and 158.73 times. Qualified institutional buyers portion also subscribed fully by 41.05 times.
By the end of March 31, 2023, Hemant Surgical's net worth increased to nearly ₹23.60 crore compared to ₹13.2 crore in FY22. Total revenue was at ₹111.5 crore versus ₹105.8 crore in FY22.
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