The shares of Glen Industries made a bumper market debut on July 14, listing at Rs 157 apiece on the BSE SME platform. This marks a premium of 61.86 percent over the issue price of Rs 97 per share.
The listing premium is higher than the grey market estimates. Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of nearly 57 percent over the IPO price at Rs 152 apiece, according to data on Investorgain.
The food packaging and service products maker had launched its IPO to raise Rs 63.02 crore through an entirely fresh issue of 64.96 lakh shares at a price band of Rs 92-97 per share. The maiden public issue of the company saw strong investor interest during its three day of public bidding, being subscribed a whopping 242 times between July 8 and July 10.
Non institutional investors lead the subscription race, booking their reserved portion over 350 times. Retail investors and Qualified institutional investors followed, subscribing their reserved portion over 225 times and 192 times respectively.
Investors could bid for a minimum of 1,200 shares, requiring an investment of Rs 1,16,400 at the upper price band, and in multiples thereafter. At the listing price, one lot of 1,200 shares would be worth Rs 1,88,400. This implies a profit of Rs 7,200 per lot for its allotted investors.
On July 7, a day before the issue, Glen Industries already raised Rs 17.46 crore, a part of the IPO, via anchor book of 18 lakh shares. HDFC Bank, Aarth AIF Growth Fund, Nine Alps Trust, Sanshi Funds, Mili Capital Investment Trust, and Swyom India Alpha Fund among 12 institutional investors participated in the anchor book.
The Rs 47.73-crore of IPO proceeds will be utilised for setting Up a new manufacturing facility at Jamalpur, West Bengal. And the remainder funds will be used for general corporate purpose.
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Glen Industries manufactures diverse range of food packaging and service products used primarily in the food and beverage, and food packaging industries.
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