The stock of Fonebox Retail was listed at a premium of 186% at Rs 200 on the NSE on Friday against the issue price of Rs 70. The uptick in stock continued as it hit the day’s high of Rs 210. At 12:15 pm, it was trading at Rs 207, up by Rs 7 or 3.50% over the listing price.

The initial public offering (IPO) opened on January 25 and closed on January 30. The issue was subscribed at 437.79. The issue received over 127.39 crore share bids at the issue closing time against 29.1 lakh equity shares available for subscription. The retail individual investors portion received 85.60 crore shares bids against the reserved quota while the non-institutional investors got over 34.08 crore share bids. Meanwhile, the qualified institutional buyers’ (QIB) portion received over 7.71 lakh share bids.

The IPO was entirely a fresh equity issue of up to 29.1 lakh equity shares aggregating to Rs 20.37 crore. The company offered its shares at Rs 66-70 apiece, and investors can bid for 2,000 shares in one lot.

The offer comprises a fresh issue of 29,10,000 equity shares with a face value of Rs 10/- through the book-building route. As many as 13,78,000 Equity Shares have been reserved for the QIB Quota, including Anchor Reservation, 4,16,000 Equity Shares for the HNI portion, 9,70,000 Equity Shares allocated for the Retail Quota and Market Maker Quota accounts for 1,46,000 Equity Shares.

The company raised Rs 5.78 crore via anchor allotment in which 682,000 shares were alloted to NAV Capital VCC – NAV Capital Emerging Star Fund at a bid price of Rs 70 per share. The company also allotted 1,44,000 shares to LC Radiance Fund VCC.

The company sells smartphones and allied accessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. The company also offers consumer durable electronic goods like laptops, washing machines, smart TVs, air conditioners and refrigerators from popular brands, including TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme and OnePlus in its multi-brand stores across Gujarat.The company operates a large network of 143 multi-brand outlets under three brand names: Fonebox, Fonebook and MyMobile, in more than 20 cities across Gujarat.Fonebox Retail is promoted by a group of dynamic and experienced entrepreneurs – Manishbhai Girishbhai Patel, Jigar Lallubhai Desai, Parth Lallubhai Desai, Jigneshkumar Dashrathlal Parekh and Amitkumar Gopalbhai Patel.

The retailer posted a total revenue of Rs 139.75 crore and a profit (PAT) of Rs 1.55 crore in the first half of the current financial year ending September 30, 2023. Its revenue grew to Rs 195.82 crore in FY 2022-23, up from Rs 90.90 crore in the previous financial year. In FY2022-23, Fonebox Retail reported a profit (PAT) of Rs 1.59 crore, compared to Rs 12.79 Lakh in FY 2021-22.

The net proceeds from the public offer will be used for its working capital requirements, for general corporate purposes and public issue expenses.

Fonebox Retail plans to invest Rs 13.5 crore to expand its retail store network to more cities in Gujarat. The company proposes to spend the remaining capital on acquiring land to build corporate headquarters, hiring human resources in marketing and technical departments, servicing repayment obligations under existing and future financing arrangements and funding future growth opportunities.

Beeline Capital Advisors Private Limited was the Book Running Lead Manager, and KFIN Technologies Limited was the Registrar of the Issue.

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