The SME IPO of Qualitek Labs has garnered a 31% subscription on the first day of the bidding process, with the retail investor category leading at 64%, while other investors’ participation stands at 6%. The IPO, set at Rs 19 crore, is entirely a fresh equity issue of 19.64 lakh equity shares, featuring a price band of Rs 100 per share. Investors can bid for 1,200 shares in one lot. The subscription process will conclude on December 22.
Approximately 50% of the offer is reserved for retail investors, with the remaining 50% allocated to other investors. The net proceeds from the public offer will fund capital expenditure for plant and machinery installation, repayment of borrowings, working capital requirements, and general corporate purposes.
Market analysts note that there is no definitive Grey Market Premium (GMP) for the company in the unlisted market.
Qualitek Labs specializes in providing testing, inspection, homologation, certification, and consultancy services to industries such as automotive, defense, minerals, environment & water, food & agriculture, pharma & healthcare, and metal & metallurgy.
The company initiated its operations from a testing laboratory in Pune in 2018 and expanded with the establishment of a second laboratory in Bhubaneshwar in 2022. Currently, Qualitek is in the process of setting up two additional testing laboratories in Pune and Noida.
The company’s turnover surged from Rs 6.35 crore in FY21 to Rs 19.13 crore in FY23. For the period ending September 2023, Qualitek Labs reported revenues of Rs 12.48 crore and a net profit of Rs 2 crore.
Oneview Corporate Advisors is the lead manager to the issue, and Skyline Financial Services serves as the registrar. The final allotment is expected on January 23, with the company’s shares likely to get listed on December 25.
