QVC Exports Limited: A Comprehensive Look at Their Initial Public Offering in the Stock Market for Small and Medium-Sized Enterprises

QVC Exports Limited, a prominent name in the small and medium-sized enterprises (SME) sector, is set to launch its initial public offering (IPO) with the aim of raising ₹24.07 crore from the primary market. The IPO, which opens on August 21 and closes on August 23, marks a significant milestone for the company as it transitions to a publicly listed entity. The equity shares will be listed on the NSE SME platform post-closure of the issue, with the allotment date scheduled for August 26 and the listing date set for August 28. The price band for this IPO has been fixed at ₹86 per share, making it an attractive proposition for potential investors.

The IPO lot size is 1,600 shares, requiring a minimum investment amount of ₹137,600 for retail investors. QVC Exports plans to raise the funds through a combination of a fresh issue of 20.5 lakh equity shares and an offer for sale (OFS) component of 7.49 lakh shares. The net proceeds from the IPO will be utilized primarily for the repayment of loans and to meet working capital requirements. According to Nilesh Kumar Sharma, the Chairman and Managing Director of QVC Exports, this IPO signifies the beginning of a new phase for the company, enabling it to enhance its operations, expand its market reach, and invest in new opportunities for future growth.

Khandwala Securities Ltd is serving as the book running lead manager for the QVC Exports IPO, while Cameo Corporate Services Limited has been appointed as the IPO registrar. The promoters of the company include Nilesh Kumar Sharma, Madhu Sharma, Priti Sharma, Matashree Mercantile Private Limited, and Unity Vyapaar Private Limited. Shares of QVC Exports have already garnered positive attention in the unlisted market, trading at ₹136 apiece, which represents a 58.14% premium to the IPO price. This strong performance in the grey market indicates robust investor interest and confidence in the company’s prospects.

QVC Exports Limited is an SME company that specializes in exports, dealing in a diverse range of products including garments, accessories, and home furnishings. The company has established a strong foothold in both domestic and international markets, thanks to its unwavering focus on quality and timely delivery. The IPO is seen as a crucial step for QVC Exports, as it will provide the necessary capital to support its expansion plans and future growth initiatives. The company’s shares are expected to be listed on the NSE SME platform, providing increased visibility and access to a broader investor base.

Investors need to be aware of several key details before subscribing to the QVC Exports IPO. The subscription window for the IPO opens on August 21 and closes on August 23. The final allotment will be made on August 26, with the company’s shares expected to be listed on August 28. The IPO is a fresh equity issue of 27.98 lakh shares, with the company aiming to raise ₹24 crore through the issue. The shares are being offered at ₹86 apiece, with a minimum market lot of 1,600 shares. In the unlisted market, the company’s shares are trading at a premium of 58%, reflecting strong demand and investor interest.

QVC Exports Limited is engaged in the business of ferroalloys, which are essential raw materials used in the manufacturing of steel. These alloys provide special properties to steel, such as increased resistance to corrosion and improved hardness, making them highly valuable in various industrial applications. In the fiscal year ending March 2024, the company reported a revenue of ₹446 crore and a net profit of ₹3.92 crore. The funds raised from the IPO will be used to repay loans and meet working capital requirements, ensuring the company’s financial stability and supporting its growth plans.

The QVC Exports IPO has a retail quota of 50%, with the remaining 50% reserved for non-institutional investors (NII). The IPO price band is fixed at ₹86 per equity share, with a minimum market lot of 1,600 shares and an application amount of ₹137,600. Investors can apply for the IPO via ASBA (Application Supported by Blocked Amount) through their bank account or by downloading the form online. The subscription for the IPO starts on August 21, 2024, for NII and retail investors, with both ASBA and non-ASBA options available for subscription.

QVC Exports Limited has a unique business model that involves procuring raw materials for manufacturers and selling their finished products to domestic and international steel manufacturers. This approach has enabled the company to create a wide customer and supplier base, ensuring a steady stream of revenue and growth opportunities. As of March 31, 2024, 82.95% of the company’s revenue came from export operations, highlighting its strong presence in international markets. The company’s major export markets include Taiwan, Japan, Bangladesh, Vietnam, and more.

In addition to its export operations, QVC Exports also imports manganese ore from reputed miners and manufacturers, further diversifying its product portfolio and enhancing its competitive edge. The company’s strong focus on quality and timely delivery has earned it a reputation for reliability and excellence, making it a preferred partner for many global steel manufacturers. The IPO is expected to provide the necessary capital to support the company’s expansion plans and invest in new opportunities, ensuring sustained growth and profitability in the future.

Investors are recommended to apply for the QVC Exports IPO with a long-term view, considering the company’s strong fundamentals and growth potential. It is important to consider the Qualified Institutional Buyers (QIB), NII, and retail subscription numbers before making an investment decision. Live IPO subscription numbers can be checked on official websites, providing real-time updates on the subscription status. Instructions for applying for the IPO through popular platforms like Zerodha, Upstox, and Paytm Money are also provided, ensuring a seamless application process for investors.

The QVC Exports IPO has generated significant interest in the market, with shares trading at a premium even before the issue opens. This positive sentiment is a testament to the company’s strong performance and growth prospects, making it an attractive investment opportunity for both retail and institutional investors. The funds raised from the IPO will be used to repay loans and meet working capital requirements, ensuring the company’s financial stability and supporting its growth plans.

QVC Exports Limited’s IPO is seen as a new phase in the company’s journey, providing the necessary capital to enhance its operations, expand its market reach, and invest in new opportunities for future growth. The company’s strong focus on quality and timely delivery, coupled with its diverse product portfolio and robust export operations, positions it well for sustained growth and profitability. Investors can follow business news and market updates through various platforms, ensuring they stay informed about the latest developments and trends in the stock market.

In conclusion, the QVC Exports Limited IPO presents a compelling investment opportunity for those looking to invest in the SME sector. With a strong track record of performance, a diverse product portfolio, and a robust presence in international markets, QVC Exports is well-positioned for future growth and success. The IPO will provide the necessary capital to support the company’s expansion plans and invest in new opportunities, ensuring sustained growth and profitability. Investors are encouraged to consider the key details and subscription numbers before making an investment decision, ensuring they make an informed choice that aligns with their investment goals and risk appetite.