Image Source : Finowings
Sellowrap Industries Limited, a manufacturer of adhesive and non-adhesive components for automotive and white goods sectors, is set to make its debut on the NSE SME platform today, August 1, 2025. Following a robust response to its ₹30.28 crore initial public offering, market watchers are closely tracking its listing price and grey market premium (GMP) to gauge investor sentiment and potential listing gains.
IPO Overview and Subscription Performance
- The IPO was a book-built issue comprising a fresh allotment of 36.48 lakh equity shares
- Price band was set between ₹79 and ₹83 per share
- The issue opened on July 25 and closed on July 29
- Overall subscription stood at an impressive 65.09 times
* Retail investors subscribed 68.74 times
* High Networth Individuals (HNIs) subscribed 117.81 times
* Qualified Institutional Buyers (QIBs) subscribed 18.76 times
This overwhelming demand reflects strong investor confidence in the company’s fundamentals and growth prospects.
Grey Market Premium and Listing Expectations
- As of early morning on August 1, the GMP stood at ₹5 per share
- This suggests a potential listing price of ₹88, indicating a modest 6% premium over the upper issue price of ₹83
- While the GMP is lower than earlier speculative highs of ₹14, the sustained interest signals a stable debut
It’s important to note that GMP is unofficial and speculative, but it often serves as a barometer of market sentiment ahead of listing.
Company Profile and Financial Snapshot
- Founded in 1983, Sellowrap Industries specializes in plastic injection molding parts, PU foam moldings, screen sealing components, and EPP moldings
- The company operates four manufacturing units across Gurugram, Pune, Ranipet, and Kancheepuram
- It supplies to marquee OEMs in India and exports to countries like Brazil, Germany, and the UK
Financial performance for FY25:
- Revenue: ₹163 crore, up 17% year-on-year
- Net profit: ₹9.97 crore, up 68% from the previous fiscal
These figures underscore the company’s operational efficiency and growing market footprint.
Use of IPO Proceeds
Sellowrap plans to utilize the funds raised through the IPO for:
- Capital expenditure including purchase of plant and machinery
- Infrastructure development and auxiliary equipment
- Working capital requirements
- General corporate purposes
This strategic allocation is expected to enhance production capacity and support future growth.
Investor Outlook and Market Sentiment
The IPO’s strong subscription and steady GMP suggest that investors are optimistic about Sellowrap’s long-term potential. While the listing premium may be modest, the company’s fundamentals, export reach, and diversified product portfolio offer a compelling growth narrative.
Analysts will be watching today’s listing closely to assess whether the stock can outperform GMP expectations and sustain momentum in the secondary market.
Source: Economic Times, NDTV Profit, NewsBytes
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