The TBI Corn IPO has seen strong demand, being subscribed more than three times on its first day. Here’s a breakdown of what’s happening with this IPO.
IPO Allocation Breakdown
- Qualified Institutional Buyers (QIBs): 50% of the net offer.
- Retail Investors: 35% of the net offer.
- Non-Institutional Investors: 15% of the net offer.
- Market Maker Reservation: 2,40,000 equity shares or 5.02% of the issue.
Company Overview
According to the Red Herring Prospectus (RHP), TBI Corn Limited offers a range of products, including:
- GMO-free corn flakes.
- Corn flour and stone-free broken maize.
- Cleaned and fat-free corn grits/meal.
- Turmeric finger.
The company holds various certifications, including ISO, APEDA, MSME, USDA, and Indian Organic. TBI Corn serves markets in the Gulf, Sri Lanka, Malaysia, Brunei, Vietnam, South Korea, Europe, and the US.
The company doesn’t have a direct listed peer, so peer group information isn’t provided in the RHP.
Between March 31, 2022, and March 31, 2023, TBI Corn’s profit after tax (PAT) increased by 1419.24%, and revenue grew by 39.07%.
Subscription Status
On day one, the TBI Corn IPO was subscribed 3.73 times. Here’s the breakdown:
- Retail Portion: Subscribed 16.97 times.
- NII Portion: Subscribed 2.70 times.
As of 13:17 IST, the company received bids for 1,18,86,000 shares against the 31,82,400 shares on offer.
IPO Details
- Total Value: ₹44.94 crore.
- Fresh Issuance: 4,780,800 equity shares at a face value of ₹10 each.
- No Offer-for-Sale Component.
Use of Proceeds
The funds raised will be used for:
- General corporate purposes.
- Meeting incremental working capital requirements.
- Expanding the existing unit.
The IPO is managed by Swastika Investmart Ltd. and Ekadrisht Capital Private Limited, with Kfin Technologies Limited as the registrar. Ss Corporate Securities is the market maker.
GMP (Grey Market Premium)
The current GMP for TBI Corn IPO is +95. This suggests the shares are trading at a premium of ₹95 in the grey market. Based on the IPO price band and the GMP, the estimated listing price is ₹189 per share, which is 101.06% higher than the IPO price of ₹94. The grey market premium reflects investors’ willingness to pay more than the issue price.
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