The stock of AIK Pipes and Polymers made a decent debut with 12.3 percent premium over the IPO price on January 2. The stock opened at Rs 100 against the issue price of Rs 89 on the BSE SME platform.
Ahead of the listing, the shares were commanding a 5 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.
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The issue was booked 43 times with retail investors picking up 30 times. The Rs 15.02-crore public offer opened for subscription on December 26 and closed on December 28, with the price fixed at Rs 89 per share. The company will use the net fresh issue proceeds to meet capital expenditure and working capital requirements. The remaining funds will be used for general corporate purposes. Imran Khan and Tahira Sheikh are the promoters of the company.
The book-running lead manager and market-maker for the issue was Shreni Shares while Skyline Financial Services was the registrar.
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AIK Pipes and Polymers manufactures pipes, HDPE fittings, MDPE pipes and PPR pipes for the water distribution, gas transmission, sewerage systems, and telecommunication sectors. The company has three manufacturing facilities in Jaipur, Rajasthan which are operated on a lease basis.
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