New Delhi:
Shares of GSM Foils, a company specializing in pharmaceutical packaging foils, made a lackluster debut on the NSE’s SME platform.
Despite its IPO being oversubscribed by more than 257 times, the shares opened at the IPO price of Rs 32, providing no immediate gains for investors.
However, shortly after listing, the shares rose to Rs 33.50, giving IPO investors a 4.69% profit.
Strong Investor Response
The Rs 11.01 crore IPO of GSM Foils was open for subscription from May 24-28 and received an overwhelming response.
It was subscribed 257.30 times overall, with the retail investor portion being filled 247.10 times.
The IPO included 34.40 lakh new shares with a face value of Rs 10 each.
The funds raised will be used to purchase plant and machinery, as well as to meet working capital needs and general corporate purposes.
About GSM Foils
Formed in 2019, GSM Foils manufactures blister foils and aluminum pharma foils used for packaging medicines such as capsules and tablets.
The company operates across 13 states and one Union Territory in India.
Financial Performance
GSM Foils has shown consistent financial growth. In the financial year 2021, the company reported a net profit of Rs 33.93 lakh, which increased to Rs 63.65 lakh in 2022 and reached Rs 1.43 crore in 2023.
The company’s revenue grew at a compound annual growth rate (CAGR) of over 34%, reaching Rs 65.89 crore.
For the current financial year 2023-24,
GSM Foils has already achieved a net profit of Rs 1.25 crore and a revenue of Rs 27.18 crore for the period from April to December 2023.
