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Srigee DLM's IPO has become the latest buzz in the SME space. On Day 2 of its public issue (May 6, 2025), investors continued to queue up for shares of the Greater Noida-based electronics and plastic moulding player. The ₹16.98 crore SME IPO opened to a roaring start on May 5 and will close on May 7.
While final Day 2 subscription numbers are yet to be officially confirmed, the overwhelming response on Day 1 — 13.77 times overall — suggests that momentum is still strong. But there's a twist: the grey market premium (GMP), often seen as an early indicator of listing day excitement, has cooled to nearly zero.
What's happening
Srigee DLM's IPO is entirely a fresh issue of 17.15 lakh shares, with a price band of ₹94-₹99. Investors need to apply for a minimum of 1,200 shares, which means a ticket size of ₹1.19 lakh at the upper end — fairly steep by SME standards.
Here's how the IPO fared on Day 1:
| Investor category | Subscription (Day 1) |
|---|---|
| Retail Individual | 15.75x |
| Non-Institutional (HNI) | 25.46x |
| QIB | 1.45x |
| Overall | 13.77x |
| (Source: Chittorgarh, NSE SME platform) | |
The shares are expected to list on the BSE SME exchange on May 12.
What's fuelling the demand
There are three key drivers behind the IPO frenzy:
-
Strong sectoral play
: Srigee DLM operates in electronics and assembly services, segments aligned with the 'Make in India' theme and growing OEM demand.
-
Healthy growth
: Revenues grew from ₹47.25 crore in FY23 to ₹54.65 crore in FY24. Net profit improved from ₹2.81 crore to ₹3.10 crore.
- IPO proceeds for expansion : The company plans to use the funds to build a new facility in Greater Noida and invest in modern equipment. That could boost scale and margins.
Investors are likely betting on this growth runway and the capital expenditure translating into future returns.
GMP signals no quick pop
What's puzzling is the subdued action in the grey market. While initial whispers suggested a ₹10 GMP (implying a listing at ₹109), the premium has evaporated. As of May 6, Srigee DLM's GMP has dropped to ₹0.
This suggests that while retail and HNI investors are showing confidence, short-term market players are unsure if the stock will deliver quick listing gains. It's a common scenario in the SME segment — strong fundamentals, but limited liquidity dampening GMP enthusiasm.
Final word for investors
Srigee DLM has clearly caught the market's eye with its robust subscription numbers. The strong retail and HNI participation indicates confidence in the company's expansion plans and financial performance.
However, the cooling GMP is a reminder not to expect fireworks on listing day.
Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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