Encompass Design India IPO: An Analysis
Encompass Design India, which makes home goods and food products, started trading on the stock market (NSE) at a significant premium. The stock price was initially trading at Rs 193.15, which is 80.51% higher than the price it was offered at during its Initial Public Offering (IPO). This indicates strong investor interest, but the stock’s performance since listing has been somewhat limited.
Key Points
- Stock listed at Rs 203.30, a 90% premium to IPO price.
- Initial trading at Rs 193.15, 80.51% above issue price.
- IPO subscribed 2.10 times, showing strong demand for shares.
- Company uses funds for office, refurbishment, and working capital.
- Encompass Design India sells home goods and food sauces currently.
- Employs 89 people and reported Rs 28.16 crore in revenue.
The IPO was very successful, being subscribed 2.10 times. Investors were clearly excited about Encompass Design India, driving the stock price up considerably during its opening. The company raised Rs 11.44 crore from anchor investors before the IPO even started.
Encompass Design India creates and sells brands focused on home products and food, specifically sauces, targeting busy city people. They started in 2010 and have expanded into e-commerce support and selling directly to customers online. They manufacture things like bed sheets and curtains, and also sell their sauces.
The funds raised from the IPO are being used to improve their offices, do renovations, and manage their day-to-day operations, as well as paying off some debts. The company is currently operating with 89 employees.
In the last six months (ending September 30, 2025), Encompass Design India made Rs 28.16 crore in sales and earned a profit of Rs 5.05 crore.
Investing in the stock market involves risk; careful consideration and research are essential.
