Gabriel Pet Straps lists at 13% premium at Rs 115 per share on the BSE and hits the upper circuit

Gabriel Pet Straps Limited specialises in the production and sale of Pet Straps under the brand name Gabriel, catering to the packaging needs of heavy materials, debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 115 per share, indicating a remarkable 14% premium compared to the final issue price of Rs 101 per share. The company’s market capitalisation is currently at Rs 32 crore on the BSE. Additionally, the company’s stock has reached the upper circuit price limit of 5% after being listed in the market.

IPO Proceeds

The company intends to utilise the Net Proceeds from the Issue for the following purposes:

• Repayment or prepayment, in full or in part, of borrowings obtained by the company from banks, financial institutions, and non-banking financial companies.
• Acquisition of land.
• Funding of capital expenditure requirements for setting up a Solar Power Plant.
• General corporate purposes.

Company profile

Established in 2020, Gabriel Pet Straps Limited specialises in the production and sale of Pet Straps under the brand name Gabriel, catering to the packaging needs of heavy materials. The company provides customised packaging solutions in a variety of sizes and colours, with the added option of direct printing on the strapping. Targeting industries such as cotton bales, fibers, packaging, paper, waste cloth, and more, Gabriel Pet Straps’ manufacturing facility is situated in Rajkot, Gujarat.

The company manufactures pet straps with widths ranging from 9 mm to 32 mm and thicknesses from 0.70 mm to 1.30 mm. Operating nationwide, Gabriel has established a distribution network covering 10 states within India for its domestic market.

Subscription details:

On February 02, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 246.20 times. The public issue received remarkable interest, with the retail category being subscribed 122.92 times, while the NII category reached a subscription rate of 361.56 times.

The IPO price was fixed at Rs 101, with a face value of Rs 10 per share and a lot size of 1200 shares. The total size of the company’s IPO was Rs 8.06 crore, and the final share issue price was fixed at Rs 101 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have earned an impressive 20% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.