Magenta Lifecare IPO Heavily Oversubscribed On Opening Day

Mumbai, Jun 6 (KNN) The initial public offering (IPO) of Magenta Lifecare, a manufacturer of foam-based products such as mattresses and pillows, has been heavily oversubscribed on its opening day.

According to data from the Bombay Stock Exchange (BSE) as of 5:00 pm on Wednesday, the issue received bids for 4,64,40,000 shares against the 20,00,000 shares on offer, resulting in an oversubscription of 23.2 times.

The IPO, which remain open until Friday, is priced at Rs 35 per share, with a minimum order quantity of 4,000 equity shares. The equity shares are slated to be listed on the BSE's SME platform.

The public issue comprises a fresh issue of 20,00,000 shares. Upon the successful completion of the IPO, the promoter and promoter group's shareholding in Magenta Lifecare will dilute from the pre-IPO level of 84.06 per cent to 59.59 per cent.

Additionally, 1,04,000 equity shares have been reserved for subscription by market makers, with the net issue comprising 18,96,000 equity shares, constituting 27.60 per cent of the company's post-issue paid-up equity share capital.

Magenta Lifecare intends to utilise the net proceeds from the IPO to fund its incremental working capital requirements and for general corporate purposes.

Based in Vadodara, Gujarat, Magenta Lifecare manufactures a wide range of foam-based products, including memory foam, latex-based, bonded mattresses, pocketed spring mattresses, and various types of pillows, which are marketed under the 'Magenta' brand within India.

The company reported revenue from operations of Rs 6.01 crore and a net profit of Rs 0.24 crore for the period ending December 31, 2023, employing a workforce of 41 employees.

The strong oversubscription on the opening day of Magenta Lifecare's IPO reflects investors' keen interest in the company's growth prospects and the broader mattress and pillow manufacturing industry in India.

(KNN Bureau)