CFF Fluid Control IPO: Stellar Debut on BSE SME Exchange
CFF Fluid Control Ltd experienced a remarkable start as its shares debuted on the BSE SME exchange, trading at a premium on Monday.
The stock opened at ₹175 per share, representing a 6 percent increase over the issue price on the BSE SME exchange. It quickly soared to ₹183.75 per share, hitting the upper circuit, and experienced a minor dip to ₹175 within the same day, as observed at 10:05 AM IST.
During the fourth day of bidding, the IPO received a subscription rate of 2.21 times, with retail investors subscribing 1.67 times and other categories subscribing 2.75 times. On the third day, the subscription rate was 1.23 times, while on the second and first days, it stood at 95% and 71%, respectively.
The public issue opened for bidding on Tuesday, May 30, and closed on Friday, June 2.
Out of the total shares issued, 50% were allocated to retail investors, while the remaining 50% were allotted to other investors.
The proposed SME IPO set a price band of ₹165 per equity share. The IPO’s total size amounts to ₹85.80 crore, consisting solely of fresh issue shares. The net proceeds from the offering will be utilized for various purposes, including working capital needs, debt repayments, equipment purchases, technology acquisition for “Towed Wire Antenna (TWA),” and general business requirements.
The registrar for the IPO is Cameo Corporate Services Ltd.
CFF Fluid Control primarily specializes in producing and maintaining shipboard equipment, essential systems, and testing facilities for submarines and surface ships of the Indian Navy. Additionally, the company is involved in the development, production, and maintenance of mechanical systems and equipment for sectors such as nuclear and clean energy.
In the fiscal year ending December 2022, the company reported a revenue of ₹50.85 crore, a significant increase compared to the revenue of ₹7.18 crore for the same period.
Dilip Davda, the contributing editor at Chittorgarh.com, provided an analysis stating, “The company operates within the Defense sector and has shown a satisfactory financial performance to date. However, a careful evaluation of its peers reveals a deceptive comparison. Considering the aggressively priced IPO based on its annualized FY23 earnings, it appears the company is taking advantage of the current hype surrounding the Defense segment. Hence, it may be wise to refrain from investing in this overpriced opportunity.”
About CFF Fluid Control:
In order to offer the Indian military sector cutting-edge engineering and technological solutions, CFF FLUID CONTROL LTD was founded.
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