Susan Electricals IPO Launches Today: Explore GMP, Price Band, and Key Details!

The IPO of Susan Electricals India is set to open for subscription on Thursday, June 11, with the company aiming to raise Rs 70.38 crore. The offering comprises a fresh issue of 47.42 lakh shares valued at Rs 60.22 crore, alongside an offer-for-sale of 8 lakh shares worth Rs 10.16 crore. The price band has been fixed at Rs 120-127 per share, with the issue closing on June 15 and allotment expected on June 16. Shares are slated to list on the BSE SME platform on June 18. The company, established in 2007, specializes in manufacturing electrical conductors and power cables, crucial for various sectors including power distribution.

As of now, the grey market sentiment surrounding Susan Electricals indicates a strong potential for listing, with shares reported to command a premium of approximately 20% on the grey market. This suggests a possible listing price of Rs 152-153 per share, significantly above the upper limit of the IPO price band. However, investors are advised to approach this grey market premium cautiously, as it serves as an unofficial indicator and may not necessarily reflect actual market performance post-listing.

For Indian investors, the Susan Electricals IPO presents an intriguing opportunity, especially considering its impressive financial performance over the last year, where revenue saw a significant increase, nearly doubling year-over-year. Investors are likely to view the IPO as well-timed, given the company’s alignment with government-backed power infrastructure initiatives, which could support future growth. The allocation structure favors institutional and retail investors, offering diverse participation in this promising venture.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)