SME IPO: Zeal Global Services Offer Subscribed By 68% On Day 1; Two More Days Left For Subscription

SME IPO: Logistic Firm, Zeal Global Services' initial public offering (IPO) received good demand on the first day by subscribing 68% of the total size. The IPO opened on July 28, and will close on August 2. That being said, only two more days are left to apply for this IPO. The Delhi-headquartered firm plans to list its IPO on the Emerge platform of NSE.

As per the NSE data, the IPO received bids of 23,94,000 equity shares on Friday against the offered size of 35,40,000 equity shares, subscribing by 68%.

Stellar appetite was seen from non-institutional investors (NIIs) as the portion reserved for this category bid for 17,58,000 equity shares. While the portion reserved for retail individual investors (RII) bid for 6,36,000 equity shares. However, no demand was seen from qualified institutional buyers (QIBs).

Subscriptions for this SME IPO began on July 28, however, no bidding will be allowed on July 29th and 30 due to the weekend holidays. Hence, subscriptions will once again commence from July 31 and will end on August 1.

The IPO is purely a fresh issue worth Rs 36.46 crore at a price band of Rs103 per equity share. The face value is Rs 10 each. The bid lot size in the IPO is 1200 Equity Shares and in multiples thereof.

Of the total size, a 50% portion of the IPO is offered to the retail individual investors, while the balance is being offered to other investors including QIBs and NIIs.

Expert Global Consultants is the book-running lead manager for the IPO, while Skyline Financial Services is the registrar.

Zeal Goal plans to utilise the proceeds of the IPO for working capital requirements; investments in subsidiaries for business expansion; part repayment of debt; general corporate purposes; and to meet issue expenses.

On Saturday, the IPO GMP was at Rs 10 on the grey market. Hence, the GMP suggests a nearly 10% premium listing on NSE to Rs 113 per share (IPO issue price Rs 103 + Rs 10).

Post the IPO, the allotment of equity shares is likely to be done on August 4, while refunds are expected to be initiated on August 7, and shares are to be credited in demat accounts on August 8. Accordingly, Chittorgarh's report stated that the IPO is expected to list on August 9.

Headquartered in Delhi, Zeal Goal Services is engaged in the business of providing logistics solutions in the Air Cargo Industry. The company has been operating as a Sales and Service Agent ("GSSA") and sales partner for the airline in the region. It also has a presence in major locations like Delhi and Mumbai.

The company continues to invest in IT & digitalization and continues to strengthen our network to provide a cost-effective solution to airlines in a multitude of specialist cargo fields.