Apr 19, 2023
By: BI India BureauMOS Utility, an SME (small and medium enterprises) IPO, made its stock market debut on the NSE Emerge platform on April 18 with a 24 percent premium. A day later, the stock hit ₹99 versus an issue price of ₹76.
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MOS Utility provides digital products and services in the business-to-consumer (B2C), business-to-business (B2B), and financial technology fields through an integrated business model.
Credit: MOS-Utility
It offers business opportunities for shopkeepers, retailers, students, housewives, professionals and insurance agents to start their own online e-commerce business, promoting the government's "Vocal for Local" campaign.
Credit: MOS-Utility
The fintech company’s profit after tax jumped 87 percent to ₹1.57 crore in FY22 as against ₹84 lakh in FY21. Meanwhile, its revenue from operations rose 14 percent to ₹77.34 crore in FY22.
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The company has said that it will utilise the proceeds from the initial public offer (IPO) to meet its working capital requirements and for general corporate purposes.
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The issue had received a strong response from investors – overall it was subscribed 21.14 times. The non-institutional portion was subscribed 57.90 times, retail was subscribed by 11.98 times and that reserved for qualified institutional buyers was subscribed by 11.67 times.
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SME IPOs have been in huge demand among retail and high-networth individuals, who are lured by the multibagger listing gains. In fact, there are about 30 SME IPOs that have more than doubled investors' money since their listing in 2021.
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SME IPOs saw a huge increase in the financial year 2022-23 with 125 SME IPOs collecting a total of ₹2,229 crore in comparison to 70 IPOs in 2021-22, which collected ₹965 crore, as per data from Prime Database.
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The minimum investment amount for an SME IPO is ₹1 lakh as compared to nearly ₹15,000 in regular IPOs.
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