The IPO market is relatively quiet in June. No new IPOs are expected to launch on the main board this month. Meanwhile, several IPOs are lined up in the SME sector. One such IPO is showing signs of profit potential for investors even before its launch. It is Susan Electricals India. This IPO is receiving strong support in the gray market. It is expected to deliver impressive returns upon listing.

The issue size of this SME IPO is ₹70.38 crore. The company will issue 4.7 million new shares worth ₹60.22 crore. 80,000 shares worth ₹10.16 crore will be issued through the OFS. The IPO will open on June 11 and close on June 15. The listing is expected to take place on June 18.

What is the price band?
The price range for this IPO is between ₹120 and ₹127, with a face value of ₹10 per share. One lot consists of 1,000 shares. Retail investors must book at least two lots, requiring an initial investment of ₹2.54 lakh.

What is GMP?
This IPO is receiving a strong response in the gray market. From an IPO price of ₹127, its GMP has increased by ₹25 to ₹152 by Tuesday afternoon, representing a growth of approximately 20%. If this momentum continues, this IPO could generate significant profits for investors after listing. However, GMP may fluctuate until the listing date.

What does the company do?
Founded in 2007, it manufactures aluminum and copper electrical winding wire, conductors, and power cables. These are used in transformers, motors, alternators, coils, and other electrical equipment.

The company will use the IPO funds to expand its manufacturing facility in Ghaziabad, meet working capital requirements and for general corporate purposes.

PC: Navarashtra