How does a demat account contribute to financial inclusion? MintGenie explains

In recent years, particularly following the outbreak of the Covid-19 pandemic, there has been a noticeable surge in the emphasis placed on financial inclusion within societies globally. The pandemic underscored existing disparities in access to financial services and highlighted the critical need for economic equality and opportunity for all individuals, regardless of their socioeconomic status.

At the core of the financial inclusion movement is the principle of democratising financial services. This principle advocates for ensuring that people from diverse backgrounds, including those who have been historically underserved or marginalised, have access to essential tools for managing their finances and participating fully in the formal economy.

One key tool that has emerged as a catalyst for advancing financial inclusion is the demat account. In this article, we delve into how a demat account contributes to fostering financial inclusion.

GP Eco Solutions IPO: The initial public offering (IPO) of GP Eco Solutions India Ltd has been receiving strong demand from investors across the board as the issue has been heavily oversubscribed. GP Eco Solutions IPO is an SME IPO and the bidding for the issue began on June 14 and will close today, June 19.

GP Eco Solutions India offers solar energy solutions and deals in solar inverters and solar panels.

Let us check GP Eco Solutions IPO GMP, subscription status and other key details of the SME IPO.

GP Eco Solutions IPO Subscription Status

GP Eco Solutions India IPO has been subscribed by a whopping 606.40 times in total so far on June 19, the third and the last day of the bidding process. The public issue received bids for 125.23 crore equity shares as compared to 20.65 lakh shares on the offer, as per data available till 2:25 pm.

The IPO has been subscribed 646.02 times in the retail category, 132.67 times in the Qualified Institutional Bidders (QIB) category and 1,142.94 times in the Non-Institutional Investors (NII) category so far.

GP Eco Solutions IPO GMP Today

GP Eco Solutions IPO GMP today, or grey market premium today, is ₹168 per share, according to stock market observers. This indicates that the equity shares of GP Eco Solutions India are trading higher by ₹168 than their issue price, in the grey market. The latest GMP trend shows the GP Eco Solutions shares are trading at ₹262 apiece in the grey market, a hefty premium of 178.72% to the issue price of ₹94 per share.

GP Eco Solutions IPO Details

GP Eco Solutions IPO opened for subscription on Friday, June 14 and closes today, June 19. The IPO allotment is expected to be finalized on June 20 and the IPO listing date is June 24.

GP Eco Solutions India IPO is an SME IPO and the equity shares of the company will be listed on NSE SME.

GP Eco Solutions IPO price band is set at ₹90 to ₹94 per share. At the upper-end of the price band, the company plans to raise ₹30.79 crore from the issue which is entirely a fresh issue of 32.76 lakh equity shares.

The IPO lot size is 1,200 shares and the minimum investment amount required by retail investors is ₹112,800.

Deepak Pandey, Anju Pandey, and Astik Mani Tripathi are the promoters of GP Eco Solutions India Ltd. The promoter shareholding in the company will come down to 86.4% after the IPO from 62.23% at present.

Corporate Capitalventures Pvt Ltd is the book running lead manager of the GP Eco Solutions IPO, while Bigshare Services Pvt Ltd is the IPO registrar.

Read all IPO news here

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The Indian liquor industry is thriving post COVID, with premiumisation driving demand and growth. Rising disposable incomes and a youthful demographic contribute to increased volumes and margins, especially in the premium segment.

ICRA, a leading credit rating agency, projects a promising outlook for the Indian alcoholic beverages industry in the fiscal year 2025. (Bloomberg)

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In recent years, India’s liquor industry has experienced significant growth, emerging as one of the fastest-growing beverage markets globally. The industry has not only rebounded to pre-COVID volumes but also surpassed them, with certain companies and brands achieving impressive margins.

The pandemic accelerated premiumisation in the alcoholic beverage sector, as increased home consumption led consumers to opt for higher-quality products.

Further, rising disposable incomes and a youthful demographic have also contributed to the consumption as disposable incomes have grown, more individuals have the financial capacity to spend on non-essential items, including alcoholic beverages.

Additionally, the younger demographic, characterised by a greater propensity for socialising and consumption, has played a crucial role in driving consumption. This demographic trend, coupled with changing social norms and an expanding urban population, has further accelerated the growth of the liquor industry in India.

The company produces high-quality open-end yarn for the textile industry. The company's manufacturing process meets high quality requirements and is supported by cutting-edge technology and machinery. The company follows a rigorous process that includes raw material selection, blending (if necessary), spinning, winding, and quality control.

The firm's proprietors are Nirmalkumar Mangalchand Mittal and Gagan Nirmalkumar Mittal. The company's promoters have over 55 years combined experience in the cotton textile industry.

According to the Red Herring Prospectus (RHP), the company's (P/E of 517.10) listed peers include Lagnam Spintex Ltd (P/E of 8.93), PBM Polytex Ltd (P/E of 209.12), and Vippy Spinpro Ltd (P/E of 9.47).

The United Cotfab IPO basis of share allocation will be completed on Thursday, June 20, and the business will begin refunds on Friday, June 21, with the shares credited to allottees' demat accounts on the same day. United Cotfab's IPO shares are planned to be listed on BSE SME on Monday, June 24th.

United Cotfab IPO subscription status

United Cotfab IPO subscription status is 48.95 times, on day 4, so far.

The retail portion was subscribed 55.31 times, and NII portion was booked 36.11 times.

The company has received bids for 24,10,16,000 shares against 49,24,000 shares on offer, at 13:39 IST, according to data on chittorgarh.com.

United Cotfab IPO subscription status was 2.59 times, on day 1, and the issue was booked 8.68 times on the second day of bidding. United Cotfab IPO subscription status was 23.66 times, on day 3.

United Cotfab IPO GMP today

United Cotfab IPO GMP or grey market premium is +11. This indicates United Cotfab share price were trading at a premium of ₹11 in the grey market, according to investorgain.com.

Given the top end of the IPO pricing band and the current premium in the grey market, the estimated listing price for United Cotfab shares is ₹81 per share, 15.71% more than the IPO price of ₹70.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

United Cotfab IPO details

The United Cotfab IPO, worth ₹36.29 crore, consists of a fresh issuance of 5,184,000 equity shares at face value of ₹10. There is no offer-for-sale component.

The proceeds from the fresh issuance will be used to achieve the following objectives: working capital requirements, general corporate purposes, and public issue expenses.

Beeline Capital Advisors Pvt Ltd is the book-running lead manager for the United Cotfab IPO, and Purva Sharegistry India Pvt Ltd is the registrar. Spread X Securities is the market maker for United Cotfab's IPO.

United Cotfab IPO Review

“The company that was primarily a trader in fabrics went on xstream for manufacturing cotton yarn in April 2023, and thus has just one full year performance. The year marked boosted top and bottom lines that not only raise eyebrows, but also concern over its sustainability, being a highly competitive and fragmented segment. Based on FY24 super earnings, the issue appears fully priced. Well-informed/cash surplus investors may park moderate funds for the long term," said Dilip Davda, the contributing editor at Chittorgarh.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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How does a demat account contribute to financial inclusion? MintGenie explains