Clay Craft India is set to launch its IPO with a price band of Rs 193-203 per share, valuing the company at approximately Rs 417.6 crore at the upper end. The IPO allotment is expected to be finalized on June 22, with shares likely to list on the NSE SME platform on June 24.
Market observers note that the company's shares are commanding a grey market premium (GMP) of around 20%, suggesting potential listing gains if current sentiment holds. However, GMP is an unofficial indicator and can fluctuate significantly before listing.
Retail investors can apply for a minimum of two lots, comprising 1,200 shares, requiring an investment of Rs 2.44 lakh at the upper price band. High-net-worth investors need to bid for a minimum of three lots or 1,800 shares, translating into an investment of Rs 3.65 lakh.
Hem Securities is the book-running lead manager for the issue, while Kfin Technologies acts as the registrar, and Hem Finlease will serve as the market maker. Ahead of the IPO, Clay Craft India raised Rs 31.34 crore from anchor investors on June 16 through the allocation of 15.43 lakh shares.
Founded in 1994, Clay Craft India specializes in manufacturing bone china crockery and ceramic tableware products. The company plans to use around Rs 97 crore from the IPO proceeds to set up an additional manufacturing facility in Manda, Rajasthan, with the remaining funds allocated for general corporate purposes.
Background
Clay Craft India, established in 1994, has developed a strong presence in the bone china crockery and ceramic tableware market. The company caters to households, hospitality businesses, and corporate clients, offering a diverse range of products. Its expansion plans, supported by the IPO proceeds, aim to strengthen its manufacturing capabilities and market reach.
With a positive grey market premium and strong anchor participation, investors will closely monitor subscription demand over the next few days to gauge interest in the SME issue.
