Baba Food Processing made a subdued debut on the NSE SME platform as its share price remained unchanged from the issue price of ₹76. However, after the flat listing, the shares experienced a decline of over 3%, trading at ₹73 at 10:01 IST.
The price band for Baba Food Processing’s IPO was set between ₹72 and ₹76, with a lot size allowing investors to bid for a minimum of 1,600 shares and in multiples thereof.
Specializing in the production of agricultural foods, Baba Food Processing is known for its wheat flour products in both bulk and branded consumer food categories. The company offers a diverse range of products, including Tandoori Atta, Whole Wheat Atta (wheat flour), and Semolina flour (Sooji).
The Baba Food Processing IPO, valued at ₹33 crore, comprises a fresh issue of 4,342,105 equity shares, without an offer for sale (OFS) component, according to the Red Herring Prospectus (RHP).
The net proceeds from the offering will be utilized for various purposes, including investing in the fully-owned subsidiary Panchakanya Foods Private Limited to establish a manufacturing facility in Patna, Bihar. This facility will include a highly automated roller flour mill and chakki whole wheat atta mill. Additionally, the funds will finance the purchase of machinery for producing Roasted Gram Flour (Sattu) and Chickpea Flour (Besan) in the existing Ranchi manufacturing facility, meet working capital requirements, prepay or repay certain outstanding unsecured borrowings, and serve general corporate purposes.
The book running lead manager for the IPO is Horizon Management Private Limited, and the registrar is Mas Services Limited. Nikunj Stock Brokers is the market maker for Baba Food Processing.
As of Wednesday, the Grey Market Premium (GMP) for Baba Food Processing IPO is +10, indicating that the share price is trading at a premium of ₹10 in the grey market. The grey market premium reflects investors’ willingness to pay more than the issue price.
