Bumper debut for Net Avenue Technologies, lists at 133% premium over IPO price on NSE SME

Ahead of the listing, Net Avenue Tech shares were trading at a 130 percent premium in the grey market

Net Avenue Technologies stock made an impressive debut on December 8, listing at a 133.33 percent premium over the IPO price. The stock opened at Rs 42 against the issue price of Rs 18 on the NSE SME platform.

The listing was along expected lines. Net Avenue Tech was trading at a 130 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 issue was subscribed 511 times. The retail portion was booked 721 times, non-institutional investors 616 times and qualified institutional buyers picked 61 times their allotted quota of shares.

The company raised Rs 10.25 crore through the IPO, which was entirely a fresh issue of 56.96 lakh shares. The price band for the issue was fixed at Rs 16-18 per share.

The company will use the proceeds to fund working capital requirements, customer acquisition and general corporate purposes. Shreni Shares was the book-running lead manager and Bigshare Services was the registrar.

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Net Avenue Technologies is engaged in online digital direct-to-consumer business for Indian ethnic wear and accessories. The company started as a gifting portal - chennaibazaar.com and diversified its offerings and launched cbazaar.com and ethnovog.com providing ethnic clothes and jewellery.

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