Hamps Bio IPO Listing: Stock lists at 90% premium on BSE SME

Hamps Bio IPO Listing

Hamps Bio IPO Listing: A Stellar Debut with Investors’ Money Almost Doubling on Day 1

Hamps Bio’s ₹6.22 crore Initial Public Offering (IPO), which was open for subscription from December 13 to 17, 2024, has made a remarkable debut on the BSE SME platform.

Offering shares at ₹51 each, the company’s listing performance has been nothing short of exceptional, delivering significant gains for early investors.

The IPO’s incredible response and subsequent surge in stock price on its listing day demonstrate a strong market interest in the company’s business model, financial health, and growth prospects.

Massive Subscription and Strong Listing Performance

Hamps Bio’s IPO was met with an overwhelming demand from investors, especially retail participants. The issue, which was sized at ₹6.22 crore, was subscribed a jaw-dropping 1,057 times overall.

Retail investors played a critical role in this surge, with the portion reserved for them being oversubscribed by a remarkable 1,342 times.

This high level of demand indicated the market’s confidence in the company’s future performance and its potential to deliver long-term value to shareholders.

The shares, which were priced at ₹51 per share in the IPO, made an impressive debut on the BSE SME platform today.

Opening at ₹96.90 per share, the stock saw a solid 90% gain for IPO investors immediately on listing. But the good news didn’t stop there: the stock continued its upward momentum throughout the trading day, hitting the upper circuit limit of ₹101.74 by the market’s close.

This marked an almost 100% gain for investors who participated in the IPO. Such a strong listing gain is a testament to the confidence investors have in Hamps Bio’s business model, growth prospects, and its ability to generate long-term value.

A Strong Response from Investors: The IPO Numbers

The Hamps Bio IPO was marketed as an exciting opportunity, and investors did not disappoint. The offering was open for subscription for five days, from December 13 to December 17, 2024.

The total subscription stood at an astonishing 1,057 times the total issue size, with retail investors leading the charge.

The retail portion of the IPO was subscribed a massive 1,342.04 times, a reflection of the widespread confidence in the company’s future prospects.

Under the terms of the IPO, the company issued 12.20 lakh new shares with a face value of ₹10 each. The issue price of ₹51 per share, though relatively affordable, now looks like a highly attractive entry point for those who secured shares in the IPO.

As a result, IPO investors were handsomely rewarded, with their investments growing by almost 100% within just one trading day.

The funds raised through the IPO will be used for various corporate purposes, primarily for acquiring plant and machinery to bolster the company’s FMCG (Fast Moving Consumer Goods) division, as well as for marketing initiatives and other general corporate expenses.

This capital infusion is expected to help the company scale its operations and improve its capabilities to meet growing demand, both in domestic and international markets.

Hamps Bio: Company Overview and Business Model

Founded in 2007, Hamps Bio operates in two major sectors: pharmaceuticals and FMCG. The company’s product portfolio includes a wide range of tablets, syrups, capsules, injectables, oils, and nutritional supplements.

In addition to its pharmaceutical offerings, Hamps Bio also markets freeze-dried and frozen products such as strawberry, jamun, mango, and chikoo powders under its “FzyEzy” brand.

With more than 180 products across both segments, the company has established itself as a key player in the healthcare and wellness sectors.

Hamps Bio has built a strong distribution network, both in India and internationally. The company sells its pharma products through over 50 distributors and e-commerce platforms such as Amazon (in the US, Canada, and the European Union), Flipkart, and JioMart.

Domestically, its pharmaceutical products are available in eight states and union territories, while its freeze-dried products are distributed across 22 states and union territories in India and six countries abroad.

The dual-focus business model, with one segment catering to the healthcare and pharma industry and the other to the growing demand for health-conscious, convenience-based food products, positions Hamps Bio well to capture a wide market.

Moreover, the company’s growing international presence, particularly in markets like the US and Europe, speaks to its expanding global footprint.

Financial Performance and Robust Growth

Hamps Bio has consistently demonstrated strong financial performance over the past few years, with steady growth in revenue and profitability.

In the financial year 2022, the company posted a modest net profit of ₹12.15 lakh. However, it saw a significant increase in profitability in the following year, reporting ₹35.90 lakh in net profit for FY 2023.

For FY 2024, this figure further increased to ₹50.07 lakh, a clear sign that the company is scaling its operations and improving its bottom line.

The company’s revenue has also grown steadily, with a compound annual growth rate (CAGR) of over 10% over the past few years.

By FY 2024, Hamps Bio’s revenue had reached ₹6.50 crore. For the current financial year (2024-25), the company has already reported ₹4.36 crore in revenue and a net profit of ₹34.08 lakh for the period from April to October 2024.

This indicates that Hamps Bio is on track to surpass its previous financial performance and continue its upward trajectory.

Strategic Vision for Future Growth

Looking ahead, Hamps Bio is well-positioned to capitalize on the growing demand for health and wellness products, both in the pharmaceutical and FMCG sectors.

The company plans to use the funds raised through the IPO to strengthen its infrastructure and expand its product offerings.

The acquisition of new plant and machinery for its FMCG division, along with increased marketing efforts, will help the company capture a larger share of the growing consumer health market.

The company’s expanding international presence is another promising factor. Hamps Bio is already selling its products in the US, Canada, the EU, and several other countries, and it is well-positioned to further increase its global footprint as it strengthens its product lines and distribution networks.

Moreover, with increasing health consciousness among consumers, especially post-pandemic, the demand for health-related products, including nutritional supplements and functional foods, is expected to rise.

This growing trend presents Hamps Bio with a substantial opportunity to expand its offerings and grow its market share.

Final Remarks

Hamps Bio’s IPO debut has been nothing short of spectacular. With a highly successful listing and strong investor interest, the company has proved its ability to attract significant capital and market confidence.

The nearly 100% gain for IPO investors on Day 1 reflects the market’s positive outlook on Hamps Bio’s business model, financial health, and future prospects.

As the company looks to expand its operations, increase its market share, and strengthen its financial position, it is well-poised for long-term growth.

Investors who participated in the IPO can take pride in their decision, as the company’s debut on the BSE SME platform signals the beginning of an exciting chapter in its journey.

With its solid foundation, expanding product portfolio, and promising future, Hamps Bio is a company to watch closely in the coming years.