Malpani Pipes And Fittings shares list at 4.56% discount on BSE SME platform despite 137 times subscription

Malpani Pipes And Fittings shares listed on the BSE SME platform on January 4.

Malpani Pipes And Fittings shares were listed at a discount of 4.56 percent to its IPO price on the BSE SME platform on February 4. The shares were listed at Rs 85.90 apiece, down from its issue price of Rs 90 apiece.

The IPO of the plastic pipes manufacturer saw a whopping 136.92 times subscription between January 29 to January 31 at a price band of Rs Rs 80 to Rs 90. Investors had booked 28.48 crore equity shares against the offer size of 20.80 lakh shares via 73,726 applications, the subscription data on the BSE showed.

The listing marks a significant downfall from the 2.22 percent grey market premium (GMP) with which unlisted shares of the company were trading ahead of the listing, as per data on Investorgain.

The stock currently has a market capitalization of Rs 88.91 crore. After the listing, the stock tumbled further, falling nearly 4 percent to trade at Rs 82.50, as seen at 10.40 am. It is currently over 8 percent lower than its IPO price.

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Malpani Pipes And Fittings had said that the funds raised through the IPO will be utilised majorly for the purchase of machineries, repayment of debt, and general corporate purpose. Interactive Financial Services acted as the merchant banker for the company's IPO.

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