Aelea Commodities debuts with 73% premium over IPO price on BSE SME

The issue was subscribed nearly 170 times and Non-institutional investors were at the forefront

Shares of Aelea Commodities made a robust start on its stock market debut on July 22, listing at Rs 165, commanding a premium of 73.6 percent over the issue price of Rs 95 on the BSE SME platform.

The listing gains miss grey market estimates as shares were trading at a premium of 81 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

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The Rs 51 crore public offer, which is a fresh issue of 53.69 lakh shares, received high investor interest as the issue was subscribed nearly 170 times. Non-institutional investors were at the forefront, buying 390 times their allotted quota, followed by retail investors and qualified institutional buyers or QIBs.

Incorporated in 2018, it specializes in trading agricultural products, with a primary focus on processing and trading cashews. The company also deals in other goods, including sugar, pulses, soybean, rice, and wheat flour. Aelea also imports raw cashew nuts from various African countries, such as Benin, Tanzania, Burkina Faso, Senegal, and Côte d'Ivoire.

The company proposes to use the net proceeds from the issueto establish a new manufacturing unit and install the necessary plant and machinery, acquire additional plant and machinery for an existing manufacturing unit, and address general corporate purposes.

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