The Indobell Insulation IPO has caught the attention of investors, with its promising performance in the early stages of bidding. On Day 2, the IPO was subscribed 3.5 times, showcasing strong interest from retail and non-institutional investors. From the price band to financial details and grey market premium (GMP), here’s an in-depth look at everything you need to know about the Indobell Insulation IPO.
What is the Indobell Insulation IPO GMP?
The Grey Market Premium (GMP) refers to the premium amount at which shares of a company trade in the grey market before their official listing. Unfortunately, the Indobell Insulation IPO GMP has not seen significant activity yet. Investors are keeping a close eye on market movements to gauge post-listing performance.
Indobell Insulation IPO Subscribed 3.5 Times on Day 2 So Far
By 11:36 AM on the second day of bidding, the Indobell Insulation IPO had been subscribed 3.5 times. Retail investors played a pivotal role, bidding for 71,88,000 shares via 2,396 applications. Meanwhile, non-institutional investors (NIIs) showed interest with 106 applications for 7,47,000 shares. Qualified institutional buyers are yet to enter the fray, leaving room for further action in the coming days.
Indobell Insulation IPO Size
This IPO is a completely fresh equity sale of 22.5 lakh shares, aiming to raise ₹10 crore. The funds will be utilized for strategic business goals, marking a significant milestone for the company.
Indobell Insulation IPO Price Band
The IPO price is set at ₹46 per share, making it an affordable entry point for investors. With a minimum bid size of 3,000 shares per lot, retail investors can participate in this IPO without a significant capital outlay.
Indobell Insulation’s Market Presence and Potential
The company operates in a niche but growing sector, specializing in insulation products. Its offerings include nodulated wool (mineral and ceramic fiber nodules) and prefabricated thermal insulation jackets. These products cater to industries ranging from commercial buildings to industrial plants.
A Snapshot of the Thermal Insulation Industry
The Indian thermal insulation market is projected to grow from ₹2,189.81 crore in 2020 to ₹3,674 crore by 2028, reflecting a CAGR of 7.4%. Indobell Insulation stands to benefit from this upward trend, particularly as industries seek energy-efficient solutions.
Financial Performance of Indobell Insulation
The company reported total revenues of ₹5.56 crore and a net profit of ₹42 lakh for the period ending September 2024. While modest, these figures highlight steady growth in a competitive market.
Objects of the Offer
The proceeds from the IPO will be allocated to:
- Capital Expenditure: Investment in new plant and machinery.
- Working Capital: To meet operational requirements.
- Corporate Purposes: General strategic and business expansion initiatives.
Lead Managers and Registrar
Finshore Management Services is the lead manager for the IPO, with Integrated Registry Management acting as the registrar. Their expertise adds credibility to the issue.
Issue Structure of Indobell Insulation IPO
The issue is structured to cater to diverse investor segments:
- Retail Investors: 50% of the offer.
- Non-Institutional Investors: 50% of the offer.
Key Dates for the Indobell Insulation IPO
- IPO Opens: January 6, 2025
- IPO Closes: January 9, 2025
- Allotment Date: January 9, 2025
- Listing Date: January 13, 2025
FAQs about Indobell Insulation IPO
1. What is the price band for the Indobell Insulation IPO?
The IPO price is set at ₹46 per share.
2. How much has the IPO been subscribed so far?
The IPO was subscribed 3.5 times as of Day 2.
3. What is the Indobell Insulation IPO GMP?
Currently, there is no significant GMP activity reported for this IPO.
4. Who are the lead managers for the IPO?
Finshore Management Services is the lead manager, with Integrated Registry Management as the registrar.
5. When will the shares be listed?
The shares are expected to be listed on January 13, 2025.
6. What is the lot size for retail investors?
The minimum lot size is 3,000 shares.
Conclusion
The Indobell Insulation IPO presents a unique opportunity for investors, especially in a growing market like thermal insulation. With a subscription of 3.5 times on Day 2, the IPO has already garnered significant attention. Whether you’re a seasoned investor or a retail participant, this IPO could be a strategic addition to your portfolio. Keep an eye on the GMP and market trends to make an informed decision.
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