Italian Edibles Limited made its market debut on February 12, listing at a 19 percent discount over the initial public offering (IPO) price on the NSE SME platform. The shares opened at Rs 55, compared to the issue price of Rs 68.
Despite its discounted listing, the IPO garnered significant attention, with a subscription rate of 154.43 times. The retail portion saw an impressive oversubscription of 120.62 times, while non-institutional investors (NII) showed strong interest with a subscription rate of 177.37 times.
Leading up to the listing, Italian Edibles exhibited a 17 percent premium in the grey market, providing investors with insights into the potential listing price. The grey market premium (GMP) is a crucial indicator for many investors, offering a glimpse into market sentiment before the official listing.
The IPO, open for bidding from February 2 to February 7, had a fixed offer price of Rs 68 per share, with a minimum lot size of 2,000 shares.
The net proceeds from the IPO are earmarked for several purposes, including setting up a proposed manufacturing unit, repaying certain borrowings, meeting incremental working capital requirements, and covering general corporate expenses.
Established in 2009, Italian Edibles Limited specializes in a diverse range of confectionery products under the OfCour’s brand. These include rabdi, milk paste, chocolate paste, lollipops, candies, jelly sweets, multigrain puffed buns, and fruit-based products. The company operates two manufacturing units in Indore.