Shares of Vivaa Tradecom Ltd, which is engaged in manufacturing and trading of clothes and garments, opened 20 percent lower on the listing day after its issue was subscribed nearly 2 times last week.
The stock opened at Rs 40.80 on the BSE and touched a high and a low of Rs 42.82 and Rs 38.76. At 10.30am, the stock was trading at Rs 40.80, down 20 percent, from its issue price.
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The Rs 8-crore SME IPO opened for subscription on September 27 and closed on October 4. The issue price was fixed at Rs 51 a share.
Established in 2010, Vivaa Tradecom Ltd offers products like denim fabric and readymade garments such as jeans and trousers for men and women, does cotton printing jobs, and trade in printed cotton fabric.
In March 2023, Vivaa partnered with Rushil Decor Ltd to distribute VIR MDF Boards in various Indian states. Their clientele includes companies like Lifestyle International Pvt Ltd, Aditya Birla Fashion and Retail Ltd, Lajja Polyfab Pvt Ltd, Nandan Denim Limited, Bajaj Impex, and Reliance Retail Limited.
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In the fiscal year 2022-23, the company had revenues of Rs 134 crore and a net profit of Rs 25.48 lakh. As of March 2023, the company's net worth was Rs 12.11 crore, with reserves and surplus of Rs 9.74 crore. The company's promoters and promoters group currently hold a 50 percent stake, but this will decrease to 30.11 percent after the IPO.
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