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Magenta Lifecare IPO has opened for subscription on Wednesday, June 5 and will end on Friday, June 7. The issue's price band has been fixed at ₹35 apiece. The Magenta Lifecare IPO lot size is 4,000 shares. Investors may bid for a minimum of 4,000 shares or multiples thereof. Magenta Lifecare IPO drew considerable interest from investors across all categories, and the offer was completely booked within hours of its launch. For retail investors, the minimum investment is ₹1.4 lakh. High Net-worth Individuals (HNIs) must apply for two lots of 8,000 shares, with a minimum investment of ₹2.8 lakh.
According to the Red Herring prospectus (RHP), the firm manufactures foam-based products such as mattresses and pillows that are marketed in India under the brand name "Magenta". The company's product offerings include a wide range of mattresses such as memory foam, latex-based, bonded mattresses, pocketed spring mattresses, and pillows such as memory foam pillow, molded memory foam pillow, and molded contour foam pillow, among others.
The company's listed peers are Sheela Foam Ltd (with a P/E of 44.65) and Tirupati Foam Ltd (with a P/E of 17.85).
Magenta Lifecare Limited's revenue climbed by 1.79%, while profit after tax (PAT) increased by 29.96% during the fiscal years ending March 31, 2023 and March 31, 2022.
Magenta Lifecare IPO subscription status is 120.75 times, on day 2, so far.
The retail portion was subscribed 174.84 times, and NII portion was booked 66.50 times. Qualified Institutions Buyers (QIBs) portion was booked 1%.
The company has received bids for 22,89,44,000 shares against 18,96,000 shares on offer, at 17:07 IST, according to data on chittorgarh.com.
Magenta Lifecare IPO subscription status was 24.49 times, on day 1.
The Magenta Lifecare IPO, valued at about ₹7 crore, consists of a fresh issuance of 2,000,000 equity shares at face value of ₹10. There's no offer-for-sale component.
The firm intends to use the net proceeds from the Issue for the following objectives: financing our working capital requirements and general corporate purposes.
Fedex Securities Pvt Ltd is the book running lead manager for the Magenta Lifecare IPO, while Cameo Corporate Services Limited is the registrar. Sunflower Broking is the market maker for Magenta Lifecare's IPO.
Magenta Lifecare IPO grey market premium is +28. This indicates Magenta Lifecare share price were trading at a premium of ₹28 in the grey market, according to investorgain.com.
Given the upper end of the IPO pricing band and the existing premium in the grey market, the expected listing price for Magenta Lifecare shares is ₹63 per, which is 80% more than the IPO price of ₹35.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
"The company is operating in a highly competitive and fragmented segment. With its asset light model and cost management, the company is confident of maintaining and improving its performance as indicated by last 21 months working. Based on FY24 annualized earnings, the issue appears aggressively priced. Small equity post-IPO indicates longer gestation for migration. Well-informed/cash surplus investors may park funds for the long term rewards," said Dilip Davda, the contributing editor at Chittorgarh.
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