SJ Logistics had a decent market debut on December 19, listing at a 40 percent premium over the IPO price. The stock opened at Rs 175 on the NSE SME platform against the issue price of Rs 125.
The bumper listing was on the back of strong subscription figures. The initial public offering was subscribed 316 times. Retail investors picked 356 times their allotted quota of share, high net-worth individuals (HNI) 489 times and qualified institutional buyers (QIB) bought 116 times the shares set aside for them.
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Ahead of the listing, the share was commanding an 80 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium to get an idea of the listing price.
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The Rs 48-crore public offer opened for subscription on December 12 and closed on December 14, with the price band fixed at Rs 121-125 per share.
The company will use the fresh issue proceeds to repay or pre-pay certain borrowings, to meet working capital requirements and for general corporate purposes. Rajen Hasmukhlal Shah is the promoter of the company.
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SJ Logistics provides freight forwarding, customs clearance and transportation handling services to companies in yarn and textiles, automobile, heavy engineering, power transmission, rubber tapes, pharmaceuticals, carpets, handicrafts and iron and steel products sectors.
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