Dar Credit and Capital shares list at 9% premium to IPO price on NSE Emerge

IPO

The shares of Dar Credit and Capital were listed at Rs 65.15 apiece on the NSE Emerge platform on May 28. This implies a premium of 8.58 percent over the SME IPO's price of Rs 60 per share.

Notably, the listing premium is lower than the grey market premium of 13% to 16% with which unlisted shares of the company were trading ahead of listing. The unlisted shares were trading with a grey market premium (GMP) of 16.67 percent at Rs 70 per share ahead of their official listing, according to data on Investorgain. According to IPO Watch, the unlisted shares were trading at Rs 68 apiece, implying a GMP of over 13 percent.

The SME IPO had seen strong investor interest, being subscribed 98.5 times on its three days of public bidding.

The company launched its maiden public issue on May 21 to raise Rs 25.66 crore. The IPO entirely comprised a fresh issue of shares. The price band for the offer was set at Rs 57-60 per share. Investors bid for 30.15 crore equity shares in three days of subscription period, compared to the offer size of 30.6 lakh shares via 79,873 applications.

Kolkata-based Dar Credit & Capital, which offers personal loans and MSME loans, will utilise IPO proceeds mainly for augmenting its capital base, and the remainder funds for general corporate purposes.

GYR Capital Advisors was acting as the merchant banker for Dar Credit IPO.

Also read: Why oversubscribed IPOs aren’t always a safe bet

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