Shares of Popular Foundations made a disappointing stock market debut on September 24, hitting lower circuit of Rs 35.15 at listing, falling 5 percent from the IPO price of Rs 37 per share on the BSE SME platform.
The listing is even weaker than the grey market estimates where shares were trading flat from the IPO price. 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.
Follow our LIVE blog for all the latest market updates
The Rs 19.87-crore public offer was entirely a fresh issue of 53.7 lakh shares. Given the investor frenzy for SME IPOs, Popular Foundations issue wasn't well received by participants after it subscribed just over 9 times. Retail investors were ar the forefront buying 15 times the portion reserved for them while non-institutional investors picked up just 3.5 times their allotted quota. QIBs didn't participate in the bidding process.
Founded in 1998, it specializes in providing end-to-end engineering and construction solutions. The company focuses on non-residential, non-government projects primarily in and around Chennai, while also completing successful ventures in Pondicherry, Bangalore, Trichy, and other key cities. Its expertise spans a variety of sectors, including factories, educational institutions, and commercial spaces.
The company plans to use the net proceeds for several purposes, including the prepayment or repayment of a portion of its outstanding borrowings, funding its working capital requirements, and for general corporate purposes.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
