The shares of Shyam Dhani Industries made a bumper debut on stock markets on December 30, listing at Rs 133 apiece on the NSE Emerge platform. This marks a 90 percent premium over the SME IPO price of Rs 70 per share.
The company debuted with a market capitalisation of Rs 282 crore.
The listing premium is more or less at par with the strong grey market estimates. Ahead of listing, the unlisted shares of the company were trading with more than 97 percent grey market premium (GMP) over the IPO price, according to data on Investorgain.
The GMP quoted by the site has slightly fallen from the 100 percent quoted two days back.
Spices maker Shyam Dhani Industries had launched its IPO earlier this month to raise Rs 38.48 crore from the primary markets through a fresh issue of 55 lakh shares and no offer for sale (OFS) component. This means that the entire IPO proceeds will go to the company.
The maiden public issue of the company saw strong investor interest during its three days of public bidding, being subscribed 918 times between December 22 and December 24. The price band for the IPO was set at Rs 65-70 per share.
Retail investors could bid for a minimum of 2,000 shares, requiring an investment of Rs 2.6 lakh, and in multiples thereafter. Demand remained robust across all investor categories, with non-institutional investors (NIIs) and retail investors subscribing their reserved portions 1,613 times and 1,138 times respectively. The portion reserved for qualified institutional buyers (QIB) was subscribed 256.2 times.
The IPO proceeds will be used for working capital requirements, brand creation and marketing expenses, the purchase of new machinery to be installed at the existing manufacturing unit, and the purchase and installation of a solar rooftop plant.
Additionally, the company will use a portion of the IPO funds to reduce certain debts, while the remaining amount will be deployed for general corporate purposes.
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