Atmastco stock lists at 18% premium to IPO price on NSE SME

Atmastco IPO: Ahead of the listing, the shares were commanding a 7 percent premium in the grey market

Atmastco stock made a decent debut, listing at an 18.2 percent premium over the IPO price on February 23. The stock opened at Rs 91 against the issue price of Rs 77 on the NSE SME platform.

Ahead of the listing, the shares were commanding a 7 percent premium in the grey market, which is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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The offer was subscribed 17 times with the retail portion getting booked 18 times. The public offer opened for subscription on February 15 and closed on February 20. Through the IPO, the company raised Rs 56.25 crore. The offer comprised a fresh issue of 54.8 lakh shares worth Rs 42.2 crore and an offer-for-sale of 18.25 lakh shares worth Rs 14.06 crore.

The company's promoters are Subramaniam Swaminathan Iyer, Venkataraman Ganesan, Jayasudha Iyer and Apex Steel & Technology. Meanwhile, Affinity Global Capital Market was the book-running lead manager, Cameo Corporate Services was the registrar and Asnani Stock Broker was the market-maker for the issue.

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The company plans to use the net fresh issue proceeds to meet the working capital requirements, to prepay and repay certain secured and unsecured loans and for general corporate purposes.

Atmastco is a turnkey/EPC contractor, providing multi-disciplinary services and project management solutions in the ferrous and non-ferrous sectors. The company is also involved in the manufacturing of various precision equipment and heavy fabrication structures used in different industrial applications.