Susan Electricals has opened its initial public offering (IPO) for subscription today, with shares commanding a grey market premium (GMP) of around 20%. This suggests a potential listing price of Rs 152-153 per share, above the upper price band of Rs 127. However, investors should remain cautious as GMP is an unofficial indicator and may not reflect actual listing performance.
The IPO comprises a fresh issue of 47.42 lakh shares worth Rs 60.22 crore and an offer-for-sale of 8 lakh shares valued at Rs 10.16 crore. The issue will close on June 15, with allotment expected to be finalized on June 16. Shares are scheduled to list on the BSE SME platform on June 18.
The company has set the price band at Rs 120-127 per share. Investors are required to apply for a minimum of 2,000 shares, translating to an investment of Rs 2.54 lakh at the upper price band. Seren Capital is managing the issue, with Mudra RTA Ventures serving as the registrar.
Susan Electricals has allocated nearly 50% of the net offer for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors. Founded in 2007, the company manufactures aluminium and copper-based electrical winding wires, conductors, and power cables.
The company plans to use the proceeds from the fresh issue to expand its manufacturing facility in Ghaziabad and fund working capital requirements. Susan Electricals is poised to benefit from government-backed power infrastructure programmes like the Revamped Distribution Sector Scheme (RDSS).
Background
Susan Electricals has shown significant financial growth, with revenue nearly doubling to Rs 269.96 crore in FY26 from Rs 136.05 crore in FY25, and profit after tax increasing by 223% to Rs 18.25 crore. The company's strategic positioning in the power infrastructure sector aligns with government initiatives, making this IPO a point of interest for investors.
As the IPO progresses, investors will be keenly watching the listing performance on June 18.
