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Lamosaic India shares debut at 18% discount on NSE SME

Stocks
2 min Read Nov 29, 2024
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Lamosaic India made its debut on the NSE SME exchange on Friday, November 29, underwhelming investors with an initial share price listing of ₹164, an 18% discount from its issue price of ₹200. Despite this subdued start, the stock quickly rebounded, touching its upper price band of ₹172.20. By 10:20 AM, it was trading at ₹170.25 per share, showing signs of recovery and optimism among market participants.

The IPO subscription and issue details

The Lamosaic India SME IPO consisted of a fresh issue of 3,060,000 equity shares, aggregating to ₹61.20 crore. The IPO opened for subscription on November 21 and closed on November 26, receiving a solid response with an overall subscription of 1.8 times. 

The retail portion of the offering was particularly popular, oversubscribed by 2.65 times, as retail individual investors placed bids for 38.62 lakh shares against the 14.53 lakh shares available for them. The Non-institutional Investors' (NII) portion was nearly fully subscribed, with bids placed for 14.27 lakh shares, just shy of the 14.53 lakh shares reserved.

For those looking at share market investment, the Lamosaic IPO presented an interesting opportunity. The company plans to use the net proceeds from the IPO to repay borrowings, address working capital needs, pursue growth via acquisitions, and cover general corporate expenses.

Lamosaic's rapid growth and market presence

Founded in 2020, Lamosaic India has quickly become a major player in the decorative laminates and plywood sector, offering premium products like flush doors, decorative laminates, acrylic sheets, and plywood. Their venture into manufacturing in September 2023, with a new facility in Chembur, Mumbai, has bolstered their capabilities. This allows them to produce customised products that cater to both commercial and residential customers. This strategic move enhances their control over product quality, operational costs, and customer satisfaction.

In terms of financials, Lamosaic India showed impressive growth, with revenue for FY24 reaching ₹55.65 crores, up from ₹31.75 crores in FY23. Their profit after tax for FY24 stood at ₹8.22 crore, a significant increase from ₹4.07 crore the previous year.

Key takeaways

  • Lamosaic India's debut on the NSE SME exchange was at a price of ₹164, 18% below its issue price of ₹200.

  • The stock price soon recovered, reaching the upper price band of ₹172.20.

  • The IPO was oversubscribed by 1.8 times, with the retail portion seeing high demand.

  • Lamosaic India's growth trajectory continues, with impressive revenue and profit growth reported for FY24.

  • Share market investment in the SME segment can be volatile, but companies like Lamosaic, with strategic manufacturing expansions, can offer attractive potential returns.

For investors considering share market investment in emerging sectors like decorative laminates and plywood, Lamosaic India presents an interesting case. However, understanding market fluctuations and the potential for future growth remains key.