New Swan Multitech stock lists at 90% premium over IPO price on BSE SME

New Swan Multitech IPO: The shares were trading at an 80 percent premium in the grey market

New Swan Multitech stock made an impressive debut, listing at a 90 percent premium over the IPO price on January 18. The stock opened at Rs 125.4 against the issue price of Rs 66 on the BSE SME platform.

Ahead of the listing, New Swan Multitech shares were trading at an 80 percent premium in the grey market, which is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

Follow our live blog for all the market updates

Also Read: New Swan Multitech SME IPO: Check price band, GMP, financials, risks and listing date

The bumper listing was on the back of strong subscription figures. The offer was subscribed 384 times and the retail portion was booked 388 times.

New Swan Multitech’s public offer opened for subscription on January 11 and closed on January 15. The price band for the issue was fixed at Rs 62-66 per share. Through the IPO, the company raised Rs 33.11 crore. The offer was entirely a fresh issue of 50.16 lakh shares.

Also Read: Maxposure IPO subscribed 904.86 times, retail portion booked 1,049 times on final day

The company will use the proceeds for the purchase of certain machinery for the existing manufacturing unit at Raian, Ludhiana, repaying debts and working capital requirements. The remaining amount will be used for general corporate purposes.

Hem Securities and Share India Capital Services were the book-running lead managers of the New Swan Multitech IPO, while Bigshare Services was the registrar for the issue. The promoters of the company are Upkar Singh, Barunpreet Singh Ahuja and Kanwardeep Singh.

Also Read: EPACK Durable IPO: 10 things to know before subscribing to Rs 640-crore issue

The company manufactures precision-engineered components and parts for the automotive industry and modern farming. The agricultural components manufacturing facility is located in Raian, Ludhiana, Punjab while the auto parts manufacturing facility is in Vithlapur village, Ahmedabad, Gujarat.