Envirotech Systems lists at 89% premium over IPO price on NSE SME

The company plans to use the funds raised to purchase land and a building for setting up a factory

Shares of Envirotech Systems made a blockbuster debut on the bourses on September 24 after listing at Rs 106, a massive premium of 89.2 percent over the issue price of Rs 56 per share on the NSE SME platform.

The listing gains beat grey market estimates where shares were trading at a premium of 84 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

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The Rs 30-crore public offer is a fresh issue of 54 lakh shares and was subscribed over 90 times, official data showed. Non-institutional investors were at the forefront after picking 187 times their allotted quota. QIBs were next in line buying over 68 times while retail investors mopped up 64 times the portion reserved for them.

Envirotech Systems specializes in designing and supplying custom enclosures for noise reduction in machinery and mechanical equipment, suitable for both indoor and outdoor applications. Its product range includes Noise Test Booths, Engine Test Room Acoustics, Anechoic and Semi-anechoic Chambers, Acoustic Enclosures, Envirotech Noise Barriers, Polycarbonate and Metallic Noise Barriers, Echo Barriers, Acoustic Louvers, and Envirotech Metal Doors.

The company plans to use the funds raised to purchase land and a building for setting up a factory, meet its working capital requirements, cover general corporate expenses, and address issue expenses, while also achieving the benefits of listing on the Emerge Platform of the NSE.

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