Jay Bee Laminations shares soar on debut after 90% premium on NSE SME

Elara Capital remains optimistic on Rallis India stock with a target price of Rs 380, highlighting potential growth if new management meets expectations.

Shares of Jay Bee Laminations were off to a roaring start on its stock market debut on September 3 after listing it at Rs 277, a premium of 90 percent over the issue price of Rs 146 per share on the NSE SME platform.

The listing gains, however, miss grey market estimates were shares were trading at a premium of 107 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 88.96-crore public offer, which is a combination of a fresh issue and an offer-for-sale, was keenly watched by investors after the issue was subscribed 113.25 times. Non-institutional investors were the most active, subscribing about 229 times their allotted quota. Retail investors and qualified institutional investors (QIBs) followed next, buying 86 and 72 times the portion reserved for them.

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Established in 1988, Jay Bee Laminations supplies Cold Rolled Grain Oriented (CRGO) and Cold Rolled Non-Grain Oriented (CRNGO) steel cores. The company produces electrical laminations, slotted coils, and assembled cores used in transformers, UPS, and inverters for the power industry.

The company intends to use the net proceeds from the fresh issue to fund its working capital requirements and cover general corporate expenses.

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