SPP Polymer shares debut at 7% premium over IPO price on NSE SME

SPP specializes in manufacturing a diverse range of products, including HDPE/PP woven fabric and bags

Shares of SPP Polymer were off to a muted start on its stock market debut on September 17 after listing at Rs 63, a premium of 7 percent over the issue price of Rs 59 per share on the NSE SME platform.

The listing gains, however, miss grey market estimates where shares were trading at a premium of 25 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 Rs 24.49-crore public offer, which is purely a fresh issue of 41.5 lakh shares, received decent investor interest after the issue was subscribed 43.29 times over three days. Retail investors were at the forefront, buying almost 60 times the portion reserved for them. Non-institutional investors bought 22 times the allotted quota. Qualified institutional buyers or QIBs didn't participate in the offer.

Incorporated in 2004, the company is based in Rudrapur City, Uttarakhand. It specializes in manufacturing a diverse range of products, including HDPE/PP woven fabric and bags, non-woven fabrics and bags, and multifilament yarn. Its product portfolio includes HDPE/PP woven fabric, HDPE/PP woven bags, and non-woven fabric.

The company plans to use the net proceeds in line with the estimated implementation schedule for the following purposes: repayment of loans, meeting working capital requirements and addressing general corporate needs.

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