Amkay Products IPO Opens Today: Check Subscription Status
The small and medium enterprise (SME) IPO opens for bidding today which is April 30 (Tuesday) and will close on May 3 (Friday).
Amkay Products Limited has its roots in Thane, Maharashtra, where it began its journey with a rented manufacturing unit in Vasai. Over the years, the company has expanded its footprint, moving to larger manufacturing units to accommodate the growing product line and market demand. This expansion is a testament to the company's dedication to innovation and customer satisfaction.
The business started with the aim of addressing a gap in the market for medical products that met high standards of quality while being accessible to a broader audience. Amkay Products Limited began operations in 2008, initially focusing on a single product. The company's portfolio quickly grew, adding more products and eventually branching into branding and trading alongside manufacturing.
Today, Amkay Products Limited boasts a diverse product range that includes nebulizers, blood pressure monitors, surgical masks, and more. The company's products cater to hospitals, clinics, and various healthcare institutions across India and beyond. With a strong dealer network and a commitment to quality, Amkay Products Limited continues to be a trusted name in the healthcare industry.
The company's ethos revolves around timely delivery, maintaining product standards, and ensuring customer satisfaction. These principles have guided Amkay Products Limited from its inception and continue to be the driving force behind its operations.
Amkay Products Limited's journey from a single-product company to a leading healthcare product manufacturer reflects its dedication to quality, customer service, and innovation.
Amkay Products IPO Subscription Status
Sai Swami Metals & Alloys IPO was subscribed 35.75 times on Day 1 as per the BSE Data IST 17:00. The Retail portion has been subscribed 53.35 times and the non-institutional investor (NII) category has been subscribed 37.44 times. Whereas, the QIB and Anchor Investors were subscribed 0.06 times and 1 time, respectively.
Sai Swami Metals & Alloys IPO has received bids for 5,35,40,000 shares against 15,22,000 shares on offer, according to data from the BSE.
The retail investors' segment received bids for 4,12,58,000 shares against 7,62,000 shares on offer for this segment.
The NIIs portion got bids for 1,22,58,000 shares against 3,26,000 on offer for this segment.
The QIB Portion got bids for 24,000 shares against 4,34,000 on offer for this segment.
Amkay Products Limited IPO Details
Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: April 30, 2024 to May 3, 2024).
Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Wednesday, May 8, 2024).
Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹10 per share).
Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹52 to ₹55 per share).
Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 2000 Shares).
Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 2,292,000 shares (aggregating up to ₹12.61 Cr)).
Fresh Issue: A Fresh Issue in the context of an Initial Public Offering (IPO) refers to the creation and sale of new shares by a company to the public. Unlike an Offer for Sale, where existing shareholders sell their shares, a Fresh Issue results in the generation of new capital for the company. This capital is typically used for growth initiatives such as expansion, research and development, or debt repayment.(Fresh Issue: 2,292,000 shares (aggregating up to ₹12.61 Cr)).
Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Book Building IPO).
Listing At: The listing of shares in an IPO refers to the process where a company's shares are introduced to the public stock market, allowing investors to buy and sell the shares through a stock exchange. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: BSE SME).
Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: Not less than 35% of the Net Issue).
QIB Shares Offered: QIBs are institutional investors such as banks, mutual funds, insurance companies, pension funds, etc., who have expertise and financial resources to invest in the securities market. They are considered as informed and sophisticated investors who can assess the risks and returns of an IPO. QIBs can bid for up to 50% of the total shares offered in an IPO via the profitability route, or up to 75% of the total shares offered in an IPO via the QIB route. QIBs have to pay only 10% of the bid amount at the time of application, and the rest after the finalization of the basis of allotment. (QIB Shares Offered: Not more than 50% of the Net Issue).
NII (HNI) Shares Offered: NII stands for Non-Institutional Investors, which includes High Net-worth Individuals (HNIs) who bid for shares worth more than ₹200,000. The NII category is reserved for investors who do not fall under the retail or Qualified Institutional Buyers (QIBs) categories. Typically, a certain percentage of the IPO, usually around 15%, is allocated for NIIs to ensure a wider distribution of shares. HNIs within the NII category often have a higher chance of allotment compared to retail investors, making it an attractive option for those looking to invest larger sums in an IPO. (NII (HNI) Shares Offered: Not less than 15% of the Net Issue).
Conclusion
In conclusion, the initial public offering (IPO) of Amkay Products has garnered significant attention, reflecting the company's promising position in the healthcare sector. With a comprehensive portfolio of medical devices and healthcare products, Amkay Products has demonstrated its commitment to quality and innovation. The IPO subscription status indicates a well-received offering, with a diverse range of investors showing interest. The allocation of shares to anchor investors at a price of Rs 55 per share underscores the confidence in the company's growth trajectory. As the subscription window draws to a close, potential investors have a unique opportunity to be part of Amkay Products' journey in expanding its reach and impact within the industry. The IPO's success will not only benefit the company but also contribute to the broader healthcare ecosystem, supporting enhanced medical care and services across India. Investors are advised to consider the long-term prospects and the company's strategic direction when making their investment decisions. The IPO of Amkay Products stands as a testament to the vibrant SME sector in India and its potential for robust growth in the coming years.
Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.