The shares of LK Mehta Polymers were listed at Rs 71.10 per share on the BSE SME platform on February 21. This marks a flat listing over its IPO price of Rs 71 apiece.
The manufacturer and trader of plastic products launched its maiden IPO to raise Rs 7.38 crore. The SME IPO completely comprised a fresh issue of 10.4 lakh shares at a fixed price of Rs 71 apiece. The company had reserved 50 percent of the net issue for retail investors.
Grey Market Premium
Ahead of the listing, the unlisted shares of the company were trading with a grey market premium (GMP) of 7 percent over the SME IPO price at Rs 76, as per data on Investorgain. The GMP has significantly tumbled from the 21 percent GMP with which the unlisted shares were trading on February 12, a day before the IPO opened for bidding.
The IPO was oversubscribed 42.28 times between February 13 and February 17. Investors had bought 4.39 crore equity shares of the Madhya Pradesh-based company, as against the offer size of 10.4 lakh shares, through 15,314 applications, as per subscription data from BSE. The allotments were declared on February 18, while refunds to non-allotted individuals were sent on February 19.
LK Mehta Polymers intends to utilise IPO proceeds for its incremental working capital requirement, and general corporate purpose.
Notably, along with LK Mehta Polymers, Shanmuga Hospital stock also debuted on the SME platform on February 21.
Shanmuga Hospital IPO:
Shanmuga Hospital shares also made a flat listing on the BSE SME platform on February 21. The shares were listed at zero premium to IPO price at Rs 54 apiece.
The Tamil Nadu-based multi-specialty hospital operator had entered the capital markets to raise Rs 20.62 crore via an initial share sale of 38.18 lakh shares. Investors subscribed the IPO 2.43 times between February 13 and February 17.
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