SD Retail reaches 5% upper circuit following a listing with over 10% premium

SD Retail Limited made a notable entry on the NSE Emerge platform, listing at ₹145 per share, which is a premium of 10.68% over its initial public offering (IPO) price of ₹131. After debuting strongly, the stock surged further, hitting the 5% upper circuit, trading at ₹152.25 per share. 

This remarkable performance has piqued investor interest and generated a significant buzz around the decision to invest in IPO offerings, especially those listed on the SME platform.

SD Retail IPO: Impressive market debut

SD Retail's ₹64.98 crore IPO was open for subscription between September 20 and September 24, and it saw massive demand across all investor categories. The IPO was oversubscribed by an impressive 97.19 times, with non-institutional investors (NIIs) oversubscribing their portion by 207.98 times, retail investors by 65.32 times, and qualified institutional buyers by 69.84 times. Investors who chose to invest in an IPO were rewarded with an instant profit of ₹14 per share, equivalent to ₹14,000 for the minimum lot size of 1,000 shares.

SD Retail IPO highlights

The strong listing on the NSE SME platform reflects the positive sentiment around the company's growth potential. SD Retail's market capitalisation after listing stood at ₹285.05 crore, with 13.39 lakh shares traded on the NSE. This performance has reinforced the appeal of the SME IPO segment, encouraging more investors to explore opportunities to invest in IPO and gain early access to companies with promising growth trajectories.

SD Retail plans to utilise the IPO proceeds to open new exclusive brand outlets, fund working capital needs, and for general corporate purposes. The company, which designs and sells sleepwear under the 'Sweet Dreams' brand, has established itself through multiple retail channels, including e-commerce platforms.

Key takeaways

• SD Retail shares are listed at ₹145, a 10.68% premium over its IPO price, and hit the 5% upper circuit at ₹152.25.
• Investors who chose to invest in an IPO made a profit of at least ₹14,000 per 1,000 shares.
• The IPO was oversubscribed by 97.19 times, reflecting strong investor demand across categories.