The QVC Exports IPO has been the buzz of the week. It commenced on Wednesday, August 21, 2024, and will close on Friday, August 23, 2024. The IPO price band has been set at ₹86 per share, with a minimum lot size of 1,600 shares available for bidding.

What Does QVC Exports Do?

QVC Exports operates in the ferro alloys sector, dealing in products like ferro silicon, low carbon silico manganese, high carbon ferro manganese, high carbon ferro chrome, and high carbon silico manganese. Additionally, the company is involved in the sale of raw materials used in steel production. They have a unique business model where they purchase raw materials like manganese ore, chrome ore, and coke from suppliers, sell them to ferro alloy producers, and then buy the finished products to resell them to domestic and international steel manufacturers.

A major portion of the company’s revenue—82.95% as of March 31, 2024—comes from exports. QVC Exports has been exporting its products to numerous countries, including Taiwan, Japan, Bangladesh, Vietnam, Thailand, Turkey, Afghanistan, Korea, Italy, Ukraine, the UK, Belgium, and Oman. The company also imports manganese ore and manganese ore lumps from well-established miners and manufacturers in Hong Kong and France.

IPO Status

The QVC Exports IPO subscription status, as of Day 2 (August 22, 2024), shows an overall subscription of 20.04 times. The retail portion has been subscribed 34.74 times, while the Non-Institutional Investor (NII) portion has been subscribed 5.33 times. The company received bids for 5,32,67,200 shares against the 26,57,600 shares on offer.

The IPO, with a face value of ₹10 per share, includes a fresh issue of shares worth ₹17.63 crores and an offer for sale (OFS) of up to ₹6.44 crores by a promoter selling shareholder. The funds raised from the IPO will primarily be used to repay the company’s unsecured loans and meet its working capital needs.

What's the Latest on Grey Market Premium (GMP)?

The Grey Market Premium (GMP) for QVC Exports’ IPO today stands at ₹72. This means the IPO shares are trading at a ₹72 premium in the grey market. Considering this premium and the upper end of the IPO price band, the estimated listing price for QVC Exports shares could be ₹158 per share, which is about 83.72% higher than the IPO price of ₹86.

GMP is a good indicator of the demand for an IPO in the market and how much investors are willing to pay over the issue price. Based on recent grey market activities over the last seven sessions, today’s IPO GMP shows an upward trend, suggesting a strong listing ahead.

What’s in It for Investors?

In this IPO, QVC Exports has allocated 13,28,000 shares for Non-Institutional Investors (NII), 13,29,600 shares for Retail Individual Investors (RII), and 1,40,800 shares for the Market Maker. The registrar for the IPO is Cameo Corporate Services Limited, while Khandwala Securities Limited is the book-running lead manager. Aftertrade Broking is the market maker for this IPO.

Should You Invest?

QVC Exports' IPO could be a great opportunity for investors looking to increase their stake in the steel and ferro alloys industry. Considering the company’s strong hold on exports and its growing revenue, investing in this IPO could be beneficial. However, as they say, “It’s always wise to think before you invest.” So, make sure to consult your financial advisor before making any decisions.

The QVC Exports IPO is all set to make a strong entry into the stock market. Now, all eyes are on its listing to see how much excitement it generates.