QVC Exports IPO Sees Overwhelming Subscription Demand

The initial public offering (IPO) of QVC Exports commenced on August 21, 2024, and is set to conclude on August 23, 2024. The price range for the QVC Exports IPO has been established at ₹86 per share, with a face value of ₹10. Investors can bid for multiple shares, with a minimum bid of 1,600 shares required.

Equity shares have been allocated to various categories of investors, including Non-Institutional Investors (NII) with up to 1,328,000 shares, Retail Individual Investors (RII) with up to 1,329,600 shares, and Market Makers with up to 140,800 shares. The company specializes in ferro alloys, such as ferro silicon and various types of manganese, and is involved in the sale of raw materials for steel production.

Utilizing a distinctive business strategy, QVC Exports sources necessary raw materials like manganese ore and chrome ore, purchases finished ferro alloy products, and then sells these to both domestic and international steel producers. As of March 31, 2024, approximately 82.95% of the company’s operational revenue was generated through its export activities.

QVC Exports has consistently exported its products to numerous countries, including Taiwan, Japan, Bangladesh, Vietnam, Thailand, Turkey, Afghanistan, Korea, Italy, Ukraine, the United Kingdom, Belgium, and Oman. The company also imports manganese ore from established miners and manufacturers located in Hong Kong and France.

In its prospectus, QVC Exports noted that there are no listed companies in India that are directly comparable to its diverse business operations, challenging the feasibility of offering an industry comparison. On the third day of bidding, the QVC Exports IPO subscription status reached an impressive 533.24 times, with the retail portion subscribed at 415.22 times and the NII section booked at 596.47 times.

As of 16:46 IST, the company received bids for 1,417,132,800 shares against the 2,657,600 shares on offer, according to data from chittorgarh.com. During the first day of the IPO, the subscription was recorded at 8.61 times and later increased to 30.18 times.

This IPO features a fresh issue of shares amounting to ₹17.63 crore and an offer for sale (OFS) by a promoter selling shareholder valued at up to ₹6.44 crore. The funds raised through this offering are primarily intended to repay unsecured loans and fulfill working capital requirements.

Cameo Corporate Services Limited is acting as the registrar for the QVC Exports IPO, while Khandwala Securities Limited serves as the book running lead manager. Aftertrade Broking is recognized as the market maker for this IPO. Current grey market premium (GMP) for QVC Exports stands at +83, indicating a trading premium of ₹83 in the secondary market.

If QVC Exports shares list at the upper end of the IPO price band, the estimated listing price could be around ₹169 per share, reflecting a potential increase of 96.51% from the IPO price. Recent grey market activity indicates a rising trend, suggesting a strong market debut for the shares.