Mumbai: Encompass Design India made a remarkable entry into the Indian stock market on December 12. The company’s shares were listed at Rs 203.30 per share on the NSE SME platform, which is a huge 90 percent jump from the IPO issue price of Rs 107. This strong listing clearly beat market expectations and reflected high investor confidence.
Grey Market Signals and Listing Surprise
Before the official listing, the Grey Market Premium (GMP) for the IPO was around Rs 80 per share, suggesting a listing near Rs 187. This indicated a premium of about 75 percent. However, the stock listed even higher than GMP predictions, surprising many traders with its strong demand on debut.
IPO Journey and Subscription Response
The IPO was open for subscription from December 5 to 9, with allotments completed on December 10. Valued at Rs 40.21 crore, the issue involved a fresh issue of 38 lakh shares, with no Offer for Sale (OFS) component.
Retail investors had to apply for a minimum of two lots (1,200 shares per lot), amounting to about Rs 2.56 lakh at the issue’s upper price band.
The IPO saw healthy interest from investors. By the end of Day 3, the issue was subscribed 2.19 times overall. The retail category saw 1.69 times subscription, NIIs subscribed 4.60 times, and QIBs subscribed 1.25 times. In total, the company received bids for 54.81 lakh shares against 25 lakh shares on offer.
Use of IPO Funds
The company plans to use the funds for several growth-related activities. Around Rs 11.49 crore will be used to buy and develop office premises. About Rs 7.29 crore has been set aside for working capital, while Rs 11 crore will be used to repay existing loans. The remaining amount will support general corporate needs. 9821118668
About the Company
Founded in March 2010, Encompass Design India Limited (EDIL) operates under the brand ScaleSauce. It focuses on creating and expanding consumer lifestyle brands in the home, living, and food categories. The company produces bed sheets, curtains, comforters, table linens, and pillow covers. It also makes a range of sauces under its in-house brands, targeting modern Indian households that prefer stylish and quality products.
Disclaimer: This article is for informational purposes only and not investment advice. Stock market investments involve risks. Please consult a certified financial advisor before making any investment decision.
