Meson Valves India IPO Soars with 90% Premium in BSE Debut, Hits Upper Circuit; did you receive allotment?

21 September 2023
3 mins read
by Angel One
On the listing day itself, the investment amount nearly doubled, generating a 99% return. An investment of Rs 1.22 lakh has grown to Rs 2.43 lakh today.
Meson Valves India IPO Soars with 90% Premium in BSE Debut, Hits Upper Circuit; did you receive allotment?

Meson Valves India Limited, a prominent supplier of valves, actuators, strainers, and remote-control valve systems to industries in both domestic and international markets, made its debut with a stellar premium of 90%, reaching Rs 194 per share on the BSE.

What’s more, it hit the upper circuit after listing, and currently, there are no sellers available despite this remarkable debut. The IPO was listed only on the BSE and not on the NSE.

At the time of writing, the stock is trading at Rs 203.45 on the BSE, with intraday highs and lows of Rs 203.45 and Rs 193.80, respectively. The company’s current market capitalization stands at Rs 207 Crore.

The company’s primary plan for utilising the proceeds from the new issue is to purchase plant and machinery for the establishment of a manufacturing unit, funding working capital requirements, and addressing general corporate purposes.

Company profile: 

Established in 2016, Meson Valves India Limited, formerly recognized as Sander Meson India Private Limited, operates as a supplier of valves, actuators, strainers, and remote-control valve systems, catering to industries both within the domestic and international spheres.

Meson Valves India is actively involved in activities such as assembly, procurement, sales, distribution, import, export, and other transactions related to a wide range of products, including valves, actuators, remote control systems, control cabinets, tanks, visualization systems, piping, pumps, fittings, gaskets, flanges, and measurement devices.

In addition, the company is also engaged in the installation, maintenance, servicing, and other aspects of managing equipment and services that oversee and regulate all the products. The company’s manufacturing facility is situated in Bhamboli, Khed, Pune, Maharashtra.

Let’s recap the subscription history of the company: 

On the final day of the IPO window on September 12, 2023, the IPO witnessed a subscription rate of 173.65 times. The public issue received an overwhelming response, with the retail category subscribed 203.02 times, and the NII category reaching a subscription rate of 132.74 times.

The IPO price range was set at Rs 102 per share, with a face value of Rs 10 per share and a lot size of 1200 shares. The total size of the company’s IPO was Rs 31.09 crore, and the final share issue price was fixed at Rs 102 each.

Following is the financial performance of the company:

Particulars FY21 (Rs Lakhs) FY22 (Rs Lakhs) FY23 (Rs Lakhs)
Revenue 1542.35 1431.57 3719.30
Net Profit / (Loss) 11.81 212.54 452.43
Total Assets 2105.58 2738.78 4509.01
Total Borrowings 918.26 923.93 1124.16
Net Worth 55.17 267.71 1849.57

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions the broader indices have slipped from their all-time high levels, investors who applied for listing gains have already earned 90% on the listing day alone and can choose to book the profit it has generated.

On the other hand, considering the high demand where there are currently only buyers available and no sellers ready to sell, investors with a higher risk appetite may choose to hold the shares for the medium to long term, which could prove beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.