Shares of QVC Exports made a stellar debut as it listed at Rs 161 on the NSE SME platform, reflecting a premium of 87 percent over its IPO price of Rs 86. Following the strong debut, the stock quickly fell prey to profit booking, which dragged it off its day's high to a low of Rs 152.95.
The grey market premium for the stock early this morning had predicted for an even stronger listing, at a premium of 105 percent. 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.
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The company's public offer, which was a combination of a fresh issue of 20.5 lakh shares worth Rs 17.63 crores and an offer for sale of 7.49 lakh shares amounting to Rs 6.44 crores recorded equally impressive subscription numbers. The company's IPO was subscribed 535 times, with retail investors bidding 418.64 times their reserved portion while others booked the shares set aside 596.57 times.
Founded in August 2005, QVC Exports Limited specializes in trading various ferroalloys, including high-carbon silico manganese, low-carbon silico manganese, high-carbon ferromanganese, high-carbon ferrochrome, and ferrosilicon. As of March 31, 2024, the company generated 82.95 percent of its revenue from export operations.
The company intends to use the proceeds from the public issue to repay unsecured loans, meet working capital requirements, and cover general corporate purposes.
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