MK Sons Fine Jewels stock make a positive market debut; shares list at 6% premium

Shares of MK Sons Fine Jewels made a solid stock market debut on Wednesday, November 04, after the jewellery player was listed at Rs 171.60 on BSE Ltd, a premium of 5.93 per cent over the issue price of Rs 162. Similarly, the stock settled with a premium of 5.53 per cent at Rs 171 on NSE Ltd.

As of the listing price, investors made a profit of more than Rs 800-850 on each lot of 91 equity shares allotted to them even as the listing has been on the expected lines. Ahead of its listing, shares of MK Sons Fine Jewels were commanding a grey market premium (GMP) of Rs 10-12 apeice, suggesting nearly 7 per cent listing pop for the investors.

The IPO of MK Sons Fine Jewels was open for bidding between October 28-30 as the company raised a total of Rs 275 crore from its primary offering, which included a fresh share sale of 1.36 crore worth Rs 220.32 crore and an offer-for-sale (OFS) 34 lakh equity shares wroth Rs 55.08 crore. The company sold its shares in the range of Rs 153-162 apeice, with a lot size of 91 equity shares.

According to the data, the IPO of MK Sons Fine Jewels was subscribed a solid 5.09 times during the bidding process, fetching bids for 980 crore through 1.85 lakh applications. On an individual basis, qualified institutional bidders' (QIB) portion was booked 1.84 times, while non-institutional investors' quota was subscribed 14.12 times. Retail portion was booked 3.08 times.

Incorporated in 2012, Mumbai-based MK Sons Fine Jewels is engaged in the retail sale of gold, diamond, and CZ jewellery through its showroom network across Mumbai and Ahmedabad. It offers rings, necklaces, bangles, earrings, bracelets, Mangalsutras, solitaires, bridal jewellery, and customised jewellery.

Brokerage firms had mixed views on the issues, suggesting to subscribe it long-term only. Aryaman Financial Services was the book running lead manager of MK Sons Fine Jewels IPO and Bigshare Services served as the registrar of the issue.