Sunrest Lifescience, a healthcare and personal care product company, made its debut on the SME platform of NSE with its IPO listing. Despite a strong response from retail investors, the shares had a weak entry in the market.
Utilization of IPO Funds
The IPO, which saw over 48 times subscriptions from retail investors, issued new shares priced at Rs 84. However, investors did not witness any listing gain as the shares entered the NSE SME at the same price. The stock slipped to Rs 82.50, resulting in a 1.79 percent loss for IPO investors.
IPO Fund Utilization:
| Purpose | Allocation |
|---|---|
| Working Capital | To be determined |
| General Corporate Purposes | To be determined |
| IPO Expenses | To be determined |
Sunrest Lifescience Business Details
Sunrest Lifescience, established in 2017, specializes in the sale of capsules, tablets, syrups, ointments, gels, mouthwashes, solutions, suspensions, dry powders, and toothpaste. With 43 third-party manufacturers across various states, the company has 18 registered trademarks for 32 products.
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Financial Performance
The company’s financial health demonstrates a positive trend, with significant growth in net profit and revenue over the past few fiscal years.
Financial Highlights:
| Financial Year | Net Profit (in INR) | Revenue (in INR) |
|---|---|---|
| FY 2021 | 16.55 lakh | 16.95 crore |
| FY 2022 | 77.71 lakh | 26.91 crore |
| FY 2023 | 2.04 crore | 24.67 crore |
| Q1 FY 2023-24 | 75.08 lakh | 5.64 crore |
Investor Response
Sunrest Lifescience’s IPO, which was open for subscription from November 7-9, received substantial investor interest. Retail investors bid 65.74 times for their reserved portion, contributing to an overall subscription of 48.54 times. The funds raised from the issuance of 12,91,200 new shares will be directed toward working capital requirements, general corporate purposes, and IPO expenses.
