Qualitek Labs stock lists at 90% premium over IPO price on BSE SME

Qualitek Labs IPO: Ahead of the listing, Qualitek Labs shares were trading at a 60 percent premium in the grey market

The stock of Qualitek Labs made a strong debut, listing at a 90 percent premium over the IPO price on January 29. It opened at Rs 190 against an issue price of Rs 100 on the BSE SME platform and, within minutes, it jumped to Rs 199.50.

Ahead of the listing, Qualitek Labs shares were trading at a 60 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.

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The issue had received a decent response from investors as the offer was subscribed 58 times. The Qualitek Labs public offer opened for subscription on January 18 and closed on January 23. The issue price was fixed at Rs 100 per share. Through the IPO, the company raised Rs 19.64 crore. The offer was entirely a fresh issue of 19.64 lakh shares.

The company will use the proceeds to fund capital expenditure towards the installation of plant and machinery for new and existing laboratories and expansion of laboratories, repayment of unsecured loans to promoters and funding of working capital requirements. The remaining amount will be used for general corporate purposes.

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Oneview Corporate Advisors was the book-running lead manager of the issue, while  Skyline Financial Services was the registrar. The market maker for the Qualitek Labs IPO was Nikunj Stock Brokers. The company’s promoters are Alok Kumar Agarwal, Antaryami Nayak, Kamal Grover and TIC Services.

Qualitek Labs provides testing, inspection, homologation, certification and consultancy services to various industries such as automotive, defence, metals and metallurgy, environment and water, minerals, food and agriculture, pharma and healthcare.