Stellar Start: Qualitek Labs lists at 90% premium at Rs 190 per share on the BSE

Qualitek Labs Limited is engaged in providing comprehensive testing, inspection, homologation, certification, and consulting services, which debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 190 per share, reflecting an impressive 90% premium compared to the final issue price of Rs 100 per share. The market capitalisation of the company stands at Rs 140 crore.

IPO Proceeds:

The company plans to use the net proceeds from the issue for the following purposes: funding capital expenditure for new and existing laboratories, repaying unsecured loans to the Promoter, addressing working capital requirements, and general corporate purposes.

Company profile:

Qualitek Labs Limited specialises in providing comprehensive testing, inspection, homologation, certification, and consulting services. The company’s extensive range of laboratory services encompasses Automotive Testing, Defence Product Testing, Metals & Metallurgy Testing, Mineral Testing, Environment & Water Testing, and Food and Agriculture Testing, as well as Pharma & Healthcare. Notably, Qualitek Labs collaborates with diverse industries, including automotive, defence, metals and metallurgy, environment and water, minerals, food and agriculture, and pharma and healthcare.

With two well-equipped testing laboratories located in Pune and Bhubaneshwar, the company ensures the highest standards in its testing and inspection processes. As of January 2024, Qualitek Labs Limited boasts a dedicated team of 144 employees committed to delivering reliable and quality services across various sectors.

Subscription details:

On January 23, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 58.95 times. The public issue received remarkable interest, with the retail category being subscribed 39.23 times, and the NII category reaching a subscription rate of 69.37 times.

The IPO price was set at Rs 100, 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 19.64 crore, and the final share issue price was fixed at Rs 100 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 90% 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.