February 2, 2023
New Delhi, India
Fonebox Retail, a multi-brand retailer specializing in smartphones and consumer electronics, marked a remarkable entry into the stock market with its Initial Public Offering (IPO). Here’s a breakdown of the key highlights.
Stellar Debut: A 185% Premium
Fonebox Retail shares made a stunning debut on the NSE SME, listing at ₹200 apiece—a substantial 185% premium to the issue price of ₹70 per share. This remarkable start indicates a robust investor appetite and a positive market reception.
IPO Details and Utilization of Funds
The IPO, with an issue size of ₹20.37 crore and a price band of ₹66 to ₹70 per share, garnered significant attention during its bidding period from January 25 to January 30. The company plans to utilize the net proceeds to meet working capital requirements and for general corporate purposes.
Business Focus: Smartphones and Consumer Electronics
Fonebox Retail focuses on multi-brand retail, offering a range of smartphones, allied accessories, and consumer durable electronic goods such as laptops, washing machines, air conditioners, smart TVs, and refrigerators.
Grey Market Premium (GMP) and Investor Sentiment
Prior to the IPO listing, the Grey Market Premium (GMP) stood at ₹130 per share, reflecting a substantial premium of 185.71% to the issue price. This upbeat sentiment in the grey market translated into strong demand and oversubscription during the IPO period.
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Subscription Details: Overwhelming Investor Interest
The IPO received overwhelming demand, with a staggering oversubscription of 659.42 times. The retail category witnessed an impressive oversubscription of 886.32 times, while the Qualified Institutional Buyers’ (QIB) category and Non-Institutional Investors’ (NII) category were oversubscribed by 138.69 times and 819.99 times, respectively.
Key Players: Beeline Capital Advisors and Kfin Technologies
Beeline Capital Advisors Pvt Ltd played a crucial role as the book running lead manager for the Fonebox IPO, while Kfin Technologies took on the role of the IPO registrar.
In summary, Fonebox Retail’s successful IPO debut, coupled with significant oversubscription and a premium listing, underscores the company’s strong market position and the confidence investors have in its growth prospects.
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