What happened as Marushika Technology stepped into the primary market this week
Marushika Technology’s initial public offering opened for subscription on February 12, quietly entering India’s SME primary market with a book-built issue designed entirely as a fresh capital raise. According to exchange disclosures, the company is seeking to raise about ₹26.97 crore by issuing 23,05,200 new equity shares, with no offer for sale component. That structure signals that proceeds are meant for business use rather than promoter dilution-driven exits.
The IPO will close on February 16, with allotment expected on February 17 and a tentative NSE SME listing on February 19. While SME IPOs rarely move headline indices, they often serve as a barometer for risk appetite among informed retail investors and high-net-worth participants. Early data suggests investors are approaching this issue with caution rather than exuberance.
Why this SME offering is drawing measured but close attention from the market
SME IPOs occupy a distinct layer of India’s capital markets, offering smaller companies a regulated fundraising route while presenting investors with higher liquidity and concentration risks compared to mainboard listings. Marushika Technology’s IPO arrives at a time when investors are increasingly selective, especially after periods where SME listings delivered mixed post-listing performance.
The fully fresh-issue nature of the offer is notable. Market participants often view fresh capital raises as more aligned with business expansion, though deployment clarity ultimately shapes conviction. Details on specific utilisation of proceeds were not available in the provided disclosures, leaving some investors waiting for deeper operational visibility.
As one primary market intermediary said, “SME investors today are valuation-conscious and liquidity-aware. The days of blind oversubscription are fewer.”
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How the structure and allocation tell a story about investor targeting
The Marushika Technology IPO is structured as a bookbuilding issue with a face value of ₹10 per share and a price band of ₹111 to ₹117. At the upper band, the issue size aggregates to nearly ₹27 crore. Of the total 23,05,200 shares:
•Total issue size: ₹26.97 crore
• Nature of issue: 100% fresh capital
• Shares offered: 23,05,200
• Net offer to public: 21,88,800 shares
• Market maker reservation: 1,16,400 shares (5.05%)
• Pre-issue shareholding: 62,31,568 shares
• Post-issue shareholding: 85,36,768 shares
Investor allocation is tilted toward institutional categories:
• QIBs: 47.16%
• Retail: 33.42%
• NIIs: 14.37%
• Market maker: 5.05%
Within the QIB portion, 6,51,600 shares were allocated to anchor investors, raising about ₹7.62 crore.
NEXGEN Financial Solutions Pvt. Ltd. is managing the book build, while Skyline Financial Services Pvt. Ltd. is acting as registrar. Nikunj Stock Brokers Ltd. has been designated as market maker to support liquidity after listing.
How the high entry ticket quietly shapes investor behaviour
Unlike mainboard IPOs where retail tickets can be small, SME issues require meaningful capital. Marushika Technology’s lot size is 1,200 shares, and retail investors must apply for a minimum of two lots.
That translates to:
• 2,400 shares minimum for retail
• ₹2,80,800 minimum investment at the upper band
• 3 lots (3,600 shares) minimum for HNIs
• ₹4,21,200 HNI commitment
Such thresholds naturally filter speculative flows and attract investors comfortable with larger, concentrated bets. Market participants say this structural feature alone slows early subscription momentum.
“The ticket size ensures participants are deliberate,” said a dealer active in SME placements.
How the IPO timetable leaves little room for sentiment swings
The timeline is compressed, typical of SME issues:
• Open: February 12
• Close: February 16
• Allotment: February 17
• Refunds: February 18
• Shares credited: February 18
• Listing: February 19
This tight schedule means demand visibility often emerges only near closing, with final-day bids playing a decisive role.
How Day-1 subscription data paints a cautious picture
According to exchange data at 12:44 PM on Day 1:
• Total subscription: 0.15x
• Retail: 0.28x
• NIIs: 0.04x
• QIB (excluding anchor): 0x
• Anchor portion: fully subscribed
Retail investors bid for 2,18,400 shares against 7,70,400 reserved. NIIs bid for 13,200 shares versus 3,31,200 available. A total of 94 applications were recorded.
While these numbers appear subdued, SME IPOs historically see late bidding spurts. Dealers caution against drawing conclusions from Day-1 data alone.
What it means for investors assessing participation
For investors, the IPO requires meaningful capital due to the lot structure:
• Retail minimum: 2 lots (2,400 shares)
• Investment required: ₹2,80,800 at upper band
• HNI minimum: 3 lots (3,600 shares)
• Investment required: ₹4,21,200
This capital remains locked until listing and allotment outcomes are known. Investors must also factor in post-listing liquidity conditions, which can influence exit flexibility.
Portfolio concentration risk is another consideration given the application size.
How grey market signals remain neutral rather than directional
The grey market premium stood at ₹0 as of February 12, implying an estimated listing price near ₹117. GMP has shown no movement for nine consecutive sessions from February 4 to February 12.
This flat trend suggests neutral sentiment. Traders tracking unofficial markets say it indicates indecision rather than negative expectations. GMP remains an informal indicator and not a regulated signal.
What remains unclear as investors assess participation
Several elements are still developing:
• Whether non-anchor QIBs will enter later
• How final-day NII demand evolves
• Detailed clarity on fund utilisation
• Listing-day liquidity conditions
Such gaps are typical mid-subscription and may resolve closer to closing.
How the broader SME landscape provides useful context
India’s SME platform has grown rapidly, offering fundraising access to smaller enterprises. Regulatory oversight has strengthened, yet liquidity risk remains inherent. Market makers provide two-way quotes, but trading volumes can still be thin.
This backdrop explains why investors increasingly evaluate SME IPOs on:
• Valuation comfort
• Business visibility
• Liquidity outlook
• Allocation probability
What market participants are saying as the book builds
Primary market dealers describe the response as measured rather than weak. One intermediary said, “Selective demand is the new normal. Investors are filtering opportunities more carefully.”
No brokerage research notes were immediately available on the issue at the time of writing.
How this IPO could influence investor portfolios
The capital requirement alone makes this a concentrated exposure. Investors must account for:
• Capital lock-in until listing
• Potential listing-day volatility
• Limited liquidity compared to mainboard stocks
• Portfolio concentration risk
For some investors, SME IPOs serve as satellite positions rather than core holdings.
How the allotment process will ultimately reveal true demand
Allotment is expected on February 17. Investors can check status via Skyline Financial’s portal using PAN, application number or demat details.
The Basis of Allotment (BOA) document will show:
• Total applications by category
• Shares reserved vs demanded
• Allocation ratios
For instance, a 1:10 ratio means one allotment for every ten applicants, a key metric for gauging oversubscription intensity.
What to watch next as Marushika Technology’s IPO heads toward closing
Investors and traders are tracking:
• Final-day subscription surge
• Entry of institutional bids
• Movement in GMP
• BOA ratios
• Listing-day spreads and volumes
For now, the Marushika Technology IPO reflects a primary market where discipline and selectivity dominate. Whether the issue gathers momentum or remains measured will likely be decided in the final bidding sessions — a pattern familiar to seasoned SME investors.
