ROX Hi-Tech off to a good start, lists at 62% premium to IPO price on NSE SME

ROX Hi-Tech IPO received a strong response from investors

ROX Hi-Tech made an impressive market debut, listing at a 62.6 percent premium over the issue price of Rs 83 on November 16. The stock opened at Rs 135 and jumped to Rs 141.75 against the issue price of Rs 83 on the NSE SME platform.

Ahead of the listing, the stock was trading at a 90 percent premium to the issue price in the grey market, which is an unofficial platform where shares start trading much before the allotment 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 received a strong response from investors and was subscribed over 214 times. Non-institutional buyers remained at the forefront, buying 366 times, retail investors booked 204 times and qualified institutional buyers picked 106 times their allotted quota.

The price band for the issue, which opened on November 7 and closed on November 9, was fixed at Rs 80-83 per share. The company raised Rs 54.49 crore via the IPO, which consisted of a fresh issue of 60.17 lakh shares worth Rs 49.95 crore and an offer-for-sale of 5.47 lakh shares worth Rs 4.54 crore.

The company also raised Rs 13.12 crore from four anchor investors, including NAV Capital VCC NAV Capital Emerging Star Fund, Zeal Global Opportunites Fund, Chhattisgarh Investments Limited and Zinnia Global Fund PCC cell dewcap took part in the anchor book.

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The company will use the IPO proceeds to fund capital expenditure for setting up network and security operations, a medical automation centre in Chennai and a global software delivery centre in Noida. Jim Rakesh and Sukanya Rakesh are the promoters of the company.

ROX Hi-Tech is an IT solutions provider. It offers a range of distributed IT solutions, including consulting, enterprise and end-user computing, managed print, and network services.