The much-anticipated SME IPO from Valencia India got off to a surprisingly slow start on Wednesday. With the grey market showing no signs of premium and subscription numbers staying well below expectations by mid-day, the mood among retail investors is notably cautious.
As of Day 1, the IPO has barely caught the market’s attention. The overall subscription stood at just 0.46 times by the afternoon, and there’s been no sign of interest from institutional investors so far. Even retail and non-institutional categories are showing subdued participation. On top of that, the grey market premium is currently sitting at zero, suggesting that investors don’t expect any immediate listing gains.
A Quick Look at the IPO Details
Valencia India is aiming to raise about ₹48.95 crore through this offer, which includes ₹44 crore from a fresh issue and ₹4.95 crore via an offer-for-sale. The price band has been set at ₹95 to ₹110 per share, and retail investors need to apply for a minimum lot of 1,200 shares—which comes to around ₹1.32 lakh per application.
The IPO opened on June 26 and will close on June 30. Those who get an allotment will see shares credited to their demat accounts by July 2, and the company is expected to list on the BSE SME platform on July 3.
What the Subscription Numbers Say So Far
The first few hours of subscription haven’t shown much enthusiasm. Here’s where things stand as of now:
-
Overall subscription: 0.46×
-
Retail investors: 0.51×
-
Non-institutional investors: 0.52×
-
QIB (Qualified Institutional Buyers): No bids yet
It’s clear that many investors are taking a wait-and-watch approach. With no visible premium in the grey market, there’s little incentive for short-term gains.
So, Why the Lukewarm Start?
There are a few possible reasons for the muted response. For one, the lot size is relatively large for a retail SME IPO, and that ₹1.32 lakh ticket size can be a hurdle for small investors. Secondly, the absence of QIB participation suggests that institutional players might be waiting for stronger cues before entering.
Also, the flat grey market premium—currently at zero—doesn’t inspire much confidence. GMP usually gives an early hint about how the stock might perform on listing day, and a lack of movement here tends to dampen the buzz.
About the Company: What Does Valencia India Do?
Founded in 2017, Valencia India operates in a mix of businesses, including real estate development, trading (both food and non-food items), and hospitality. For FY24, the company posted revenue of ₹7.11 crore and net profit of ₹1.94 crore. Its EBITDA margins stand at an impressive 43%.
A large chunk of the IPO proceeds will be used to develop 15 luxury villas and a clubhouse, according to the company’s filings. The rest will go toward general business expenses.
What to Watch Next
Here are the key dates and milestones in the days ahead:
-
June 30: IPO closes
-
July 1: Allotment results expected
-
July 2: Shares to be credited to demat accounts
-
July 3: Official listing on BSE SME
For now, investors will be watching closely to see if subscription picks up in the next few days. It’s not unusual for SME IPOs to gather steam in the last 48 hours. But if GMP remains flat and QIB interest stays low, Valencia India might be headed for a very modest listing.
