Cell Point IPO: Issue Subscribed 3.76x, GMP Jumps Ahead of Listing

A SME IPO with 5,034,000 equity shares with a face value of Rs 10 and a total value of up to Rs 50.34 Crores is Cell Point (India). The initial public offering (IPO) began on June 15, 2023, and will end on June 20, 2023. Retail investors must make a minimum investment of Rs 1.20 lakh to subscribe to the IPO since the offering is priced at Rs 100 per share and the lot size is 1200 shares. Cell Point (India) IPO is proposed to be listed on NSE SME.

During its Day 3 of subscription, Cell Point (India) IPO subscribed 2.94 times. The public issue subscribed 3.40 times in the retail category, and 2.45 times in the NII category by Jun 19, 2023.

Whereas on Day 4 of subscription, Cell Point (India) IPO subscribed 3.76 times. The public issue subscribed 4.85 times in the retail category, and 2.65 times in the NII category by Jun 20, 2023. The total number of shares bid for retail category was 1,15,92,000 taking the amount to Rs 115.92 Cr, whereas the total number of shares bid for NII category was 63,32,400 taking the subscription amount to Rs 63.32 Cr.

According to market observers, Cell Point India IPO grey market premium (GMP) is Rs 8. The expected listing price for the Cell Point (India) SME IPO is Rs 108 (cap price + today's GMP), taking into account the pricing range of Rs 100. So, on the listing date, Cell Point India is expected to be priced at an upside premium of 8.00% over the issue price.

Ravi Singhal, CEO, GCL Broking said "If we look at the stock over the previous four years, we can see that it has been consistently growing, with the exception of the COVID period. Pat is also doing well. On the other hand, debt continues to climb. There are several legal proceedings pending against the promoters, and the books also include contingent liabilities that may escalate. As a result, iPO should be avoided in terms of corporate governance."

Ravi Singh, Vice President and Head of Research, ShareIndia Securities said "The annual earnings of HMA Agro Industries have shown robust growth year over year. It's exports have also risen amidst the control of many regulatory bodies including APEDA. The IPO seems to be reasonably priced, hence cash surplus investors may subscribe to this IPO from medium-term perspective."

Cell Point (India) IPO registrar is Bigshare Services Pvt Ltd and and the lead manager is First Overseas Capital Limited. The company's listing date is fixed as Thursday, 29 June 2023.

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