Qualitek Labs share price: Qualitek Labs shares list at 90% premium over IPO price

The shares of Qualitek Labs listed with a premium of 90% over the issue price on Monday. The stock was listed at Rs 190 on the BSE SME platform as against an offer price of Rs 100. The Rs 19 crore IPO is entirely a fresh equity issue of 19.64 lakh equity shares.

Ahead of the listing, there was no definitive GMP for Qualitek Labs shares in the unlisted market.

The public issue of Qualitek Labs received good response from investors with the overall subscription at nearly 59 times. The category reserved for retail investors was booked 39 times, followed by other investors at 69.37 times.

The company proposes to use the net proceeds from the public offer will be used for funding capital expenditure towards installation of plant and machinery, repayment of borrowings, working capital requirements and general corporate purposes.

Qualitek Labs is primarily engaged in the business of providing testing, inspection, homologation, certification and consultancy services to various industries such as automotive, defense, minerals, environment & water, food & agriculture, pharma & healthcare, and metal & metallurgy.

The company has commenced its business operations from a testing laboratory, which was set up in Pune in the year 2018. Later in the year 2022, it expanded and established the second laboratory in Bhubaneshwar. Qualitek is in process of setting up another two testing laboratories at Pune and Noida.

Some of its strengths include a qualified and experienced management team, robust technical capability and a strong IT infrastructure.The turnover of the company increased from Rs 6.35 crore in FY21 to Rs 19.13 crore in FY23. For the period ended September 2023, the company clocked revenues of Rs 12.48 crore and net profit of Rs 2 crore.

Oneview Corporate Advisors acted as the lead manager to the issue and Skyline Financial Services is the registrar.

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