Accent Microcell IPO: Accent Microcell, a leading manufacturer of microcrystalline cellulose (MCC), opened its IPO for subscription on December 8th, 2023. The issue is generating significant interest from investors, with a strong day 1 subscription. This blog post provides a comprehensive overview of the Accent Microcell IPO, including the latest GMP, day 2 subscription status, and other key details to help investors make informed decisions.
Understanding GMP and Subscription Status:
Grey Market Premium (GMP) refers to the unofficial premium price at which IPO shares trade before they are listed on the stock exchange. It reflects market sentiment and can be a good indicator of potential listing gains. As of December 11th, 2023 (day 2), the GMP for Accent Microcell IPO stands at a healthy ₹3.
Subscription status, on the other hand, indicates the number of shares applied for compared to the total shares offered. A high subscription ratio signifies strong investor demand and increases the likelihood of a successful listing.
Day 2 Subscription Status – A Stellar Performance:
The Accent Microcell IPO witnessed an impressive subscription of 115.72 times on day 2. This breaks down to:
- Retail Investors:173.88 times
- Non-Institutional Investors:124.26 times
- Qualified Institutional Buyers (QIBs):7.15 times
The remarkable response from retail investors is particularly noteworthy, demonstrating strong confidence in the company’s future prospects.
Also Read: How to Apply for an IPO?
Comparing Day 1 and Day 2 Subscription:
While day 2 subscription saw a slight dip compared to day 1’s 120.82 times, it remains significantly higher than the average IPO subscription rate. The strong day 2 performance indicates sustained investor interest and suggests a positive outcome for the issue.
Other Key Details:
- Price Band: ₹133 to ₹140 per share
- Issue Size: ₹78.40 crores
- Objects of the Issue: To set up a plant at Navagam Kheda for manufacturing Croscarmellose Sodium (CCS), Sodium Starch Glycolate and Carboxymethylcellulose (CMC).
- General Corporate Expenses.
Key Financials:
- P/E Ratio: 13.92
- Market Cap: ₹294.6 crores
- Debt/Equity Ratio: 0.52
- EPS: ₹10.06
Investing in Accent Microcell IPO:
The strong subscription status and high GMP suggest that Accent Microcell IPO is an attractive investment opportunity for investors seeking long-term capital appreciation. However, it’s crucial to conduct thorough research and consider factors like business fundamentals, financial performance, and market conditions before making any investment decisions.
Additional Resources: Accent Microcell IPO Red Herring Prospectus
Conclusion:
The Accent Microcell IPO has garnered significant investor interest, with day 2 subscription exceeding expectations. The high GMP and robust demand across all investor categories further strengthen the case for a successful listing. While the IPO holds promise, it’s essential for investors to conduct due diligence and make informed decisions based on their individual risk profiles and investment goals.
