Encompass Design shares list at 90% premium over IPO price on NSE SME platform

Encompass Design India, the consumer-brand builder that operates under the name ScaleSauce, made a blockbuster debut on Friday, listing at Rs 203.3 apiece on the NSE SME platform in comparison to the issue price of Rs 107.

The IPO, which closed on December 9, was trading at a GMP of 0%, suggesting a likely listing near its issue price of Rs 107 unless sentiment improved. However, the actual listing defied GMP expectations, delivering a stellar 90% premium on debut.



The Rs 40.21 crore book-built issue comprised a full fresh issue of 37.58 lakh shares. The offer reserved 47.45% for QIBs, 14.27% for NIIs and 33.27% for retail investors, while the anchor portion accounted for 10.69 lakh shares worth Rs 11.44 crore.

Subscription data shows the IPO closed at 2.19 times, with the NII segment driving the demand at 4.60 times. Retail investors bid 1.69 times the shares on offer. QIB participation was moderate with a subscription of 1.25 times, although the anchor round provided early institutional cover. The overall pattern reflects interest from high-net-worth bidders but a more measured response from institutional and retail investors.

ScaleSauce operates a hybrid model combining manufacturing, trading, brand building and e-commerce enablement. The company creates and scales consumer brands in home and lifestyle categories, producing items such as bed linens, curtains, tableware, and comforters. It also sells food products like sauces under its own labels.

Alongside manufacturing activities, the firm provides digital, marketing and fulfilment solutions to D2C brands and corporate clients, positioning itself as both a product and service platform.

The company reported revenue of Rs 55.01 crore and net profit of Rs 10.79 crore in FY25, marking a 57% jump in PAT.

Proceeds from the IPO will be used to purchase and refurbish office infrastructure, fund working capital, and repay borrowings.

The grey market currently indicates no listing gain, with the GMP at zero, suggesting that speculative interest is muted. Although GMP is not a definitive predictor of listing performance, it reflects the absence of momentum in the unofficial market.

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