Shubhshree Biofuels shares debut at 58% premium over IPO price on NSE SME

Shubhshree supplies biomass fuels, such as pellets and briquettes, to industries in sectors like recycled materials, textile processing, pharmaceuticals, and metals.

Shares of Shubhshree Biofuels Energy made a robust start on its stock market debut on on September 16 after listing at Rs 189, commanding a massive premium of 58.8 percent over the issue price of Rs 119 per share on the NSE SME platform.

The listing gains, however, miss grey market estimates where shares were trading at a premium of about 63 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.

Follow our LIVE blog for all the latest market updates

The Rs 16.56-crore public offer is a fresh issue of 13.92 lakh shares received robust investor interest after the issue was subscribed nearly 133 times. The non-institutional investors bought 245.7 times the portion reserved for them. Retail investors mopped up 135 times the allotted quota while QIBs or qualified institutional buyers purchased just 31 times.

The company supplies biomass fuels, such as pellets and briquettes, to industries in sectors like recycled materials, textile processing, pharmaceuticals, and metals. The company operates three pelleting machines, one company-owned, while the other two are leased along with the premises, offering a combined production capacity of 132 tonnes per day.

The company plans to utilize the issue proceeds for capital expenditure on installing additional plant and machinery, meeting its working capital requirements, and covering 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.