The share price of MK Sons Fine Jewels listed at Rs 171.60 on BSE on Wednesday, November 4. The shares made their debut at a premium of 5.9% from its issue price of Rs 162 per share.
Here is a look at the key details of the issue:
The public issue of MK Sons Fine Jewels was open for subscription from October 28 to October 30. The issue was subscribed 5.09 times as on the final day, with firm demand across the three categories.
The portion reserved for qualified institutional buyers (QIBs) was subscribed 1.84 times and the retail category was subscribed 3.08 times. The non-institutional investors (NII) portion was subscribed 14.12 times.
MK Sons Fine Jewels’ initial public offering (IPO) worth Rs 275.40 crore was aimed at raising Rs 220.32 crore via the issuance of 1.36 crore fresh equity shares. The issue price band was fixed at Rs 153 to Rs 162 per share. M.K. Sons had raised Rs 82.62 crore through its anchor book.
Of the total float, the issue’s fresh component comprised the majority portion of Rs 220.32 crore, which will be raised through the issuance of 1.36 crore equity shares of Rs 10 each. M.K.’s promoter, Ramchand Murlidhar Raimalani, will offload 34 lakh shares to raise Rs 55.08 crore through the offer for sale route.
Aryaman Financial Services is the book-running lead manager for the issue, while Bigshare Services Pvt. is acting as its registrar.
As per its red herring prospectus, the company will deploy capital worth Rs 152.8 crore towards its growth initiatives. This includes setting up one new showroom in Maharashtra and expanding its operations in Gujarat.
Additionally, Rs 30 crore will be diverted towards repayment and prepayment of certain borrowings availed by the company, while the remaining funds are expected to be utilised for general corporate purposes.