Signoria Creation lists at 101% premium at Rs 131 per share

Signoria Creation manufactures and sells women’s clothing, debuted on the Indian stock market today.

The stock of Signoria Creation opened at Rs 131 per share on the NSE, reflecting a substantial 101.54% premium over the final issue price of Rs 65 per share. The market capitalisation on the NSE stands at Rs 65.45 crore.

IPO Proceeds

The net proceeds from the Fresh Issue will be used to fund working capital requirements and general corporate purposes.

Business Overview

Founded in 2019, Signoria Creation Limited manufactures and sells women’s clothing such as kurtis, pants, tops, co-ord sets, dupattas, and gowns. The company has two manufacturing units, Unit I and Unit II, located in Mansarovar and Sanganer, Jaipur, Rajasthan. On September 08, 2022, the Company acquired a 501.33 square meter plot at H1-74, RIICO Industrial Area, Mansarovar, Jaipur, Rajasthan – 302020, near the existing garment manufacturing factory, which is currently under construction. The total operational capacity of the factory for FY23 is over 4,77,000 pieces of quality garments.

Subscription details

On March 14, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 666.32 times. The public issue received remarkable interest, with the retail category being subscribed 649.88 times, while the QIB and NII categories reached a subscription rate of 107.56 and 1290.56 times respectively.

The IPO price band was between Rs 61 and Rs 65 per share, with a face value of Rs 10 per share and a lot size of 2000 shares. The total size of the company’s IPO was Rs 9.28 crore, and the final share issue price was fixed at Rs 65 each.

Conclusion

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 101.54% on the listing day itself and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.