Bai Kakajee Polymers IPO: The initial public offering (IPO) of Bai Kakajee Polymers, which opened for bidding on Tuesday, December 23, garnered a strong response from institutional investors, getting fully booked in less than two hours of opening. Bai Kakajee Polymers IPO will remain open for bidding till December 26.
Bai Kakajee Polymers IPO is also enjoying a strong grey market premium (GMP), increasing its appeal for retail investors who often track this metric.
Bai Kakajee Polymers IPO Details
The ₹105 crore SME IPO of Bai Kakajee Polymers is entirely a fresh issue of 0.57 crore shares. Bai Kakajee Polymers IPO price band has been fixed at ₹177 to ₹186 apiece, with the lot size set at 600 shares.
The retail investor needs to apply for a minimum of two lots (1,200 shares), resulting in an investment of ₹2,23,200 at the upper end of the price band.
Since the IPO proceeds will be received by the company, it plans to use ₹64 crore for repayment of borrowings, ₹9.85 crore for funding installation of additional plant and machinery, ₹12.94 crore for setting up a power plant and the rest for general corporate purposes.
Bai Kakajee Polymers IPO allotment is expected to be finalised on December 29, while the listing will likely take place on the last day of the calendar year, i.e. December 31. Shares are slated to list on the BSE SME.
Bai Kakajee Polymers IPO Subscription Status
Bai Kakajee Polymers IPO was subscribed 1.01 times as of 11.50 am on the first day of the bidding process. The retail portion was booked 2%, the non-institutional investor (NII) quota was not yet off the mark, and the qualified institutional buyer (QIB) segment received 3.50 times bids.
Bai Kakajee Polymers IPO GMP
Bai Kakajee Polymers IPO GMP jumped to ₹15 today from ₹8 earlier. This means that shares of Bai Kakajee Polymers are trading ₹15 above the issue price. At the current GMP, Bai Kakajee Polymers IPO listing price could be ₹201, a premium of 8.06%.
GMP signals investor willingness to pay over and above the offer price for a company’s shares.
About Bai Kakajee Polymers
Bai Kakaji Polymers is involved in the manufacturing and trading of plastic and polymer-based products. It specialises in producing plastic granules, PET preforms, and plastic caps and closures. These products are widely used in industries such as packaged drinking water, carbonated beverages, juices, and dairy products.
The company operates four manufacturing units spread across 33,000 square meters in Latur, Maharashtra.
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