The SME IPO market is still making waves, with investors showing high enthusiasm and pushing up subscription numbers. The latest IPO in focus is from Boss Packaging, which aimed to raise ₹8 crore but ended up receiving bids worth over ₹1,000 crore. Both retail and non-retail portions were subscribed more than 100 times.
According to the company’s draft red herring prospectus (DRHP), Boss Packaging has just 64 employees as of March 2024. Photos of its office, which is reportedly in poor condition, have been circulating on social media.
The company does not own its registered office, instead leasing it. In the DRHP, Boss Packaging warned that if they face disruptions in their lease agreements, it could negatively affect their business and financial stability.
The IPO involves a fresh equity issue of 12.74 lakh shares. The funds will be used to buy machinery, meet working capital needs, and cover general corporate expenses.
Boss Packaging manufactures, supplies, and exports various packaging machines, including self-adhesive sticker labelling machines, conveyors, turntables, and more. Their products are used in several industries, such as edible oil, lubricants, chemicals, cosmetics, pharmaceuticals, juices, and agriculture.
The company’s revenue increased from ₹5.4 crore in FY22 to ₹12.17 crore in FY24. Their profit after tax also rose from ₹41 lakh in FY22 to ₹1.01 crore in FY24.
Fedex Securities is managing the IPO, and Kfin Technologies is the registrar.
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