Storage Technologies and Automation makes stellar debut with 90% premium on BSE SME

The company plans to use the net proceeds from the issue to meet working capital requirements and the rest for general corporate purposes.

Shares of Storage Technologies and Automation made an impressive start on its market debut after listing at Rs 148.2. That's a premium of 90 percent over the issue price of Rs 78 on the BSE SME platform.

The listing gains top grey market estimates where shares were trading at a premium of 76 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 29.95-crore public offer is entirely a fresh issue of 38.4 lakh shares. The company, also known as Racks and Rollers received solid investor interest during its subscription period. The issue was bought over 278 times with non-institutional investors buying a massive 577 times their portion. Retail investors purchased  243 times their allotted quota.

The company plans to use the net proceeds from the issue to meet working capital requirements and the rest for general corporate purposes.

Established in October 2010, the company specializes in the production of storage racking systems. The company's offerings include the manufacturing and installation of metal storage racks, automated warehouses, and diverse storage solutions. It caters to a wide array of industries such as oil & gas, automotive, aerospace, food & beverages, pharmaceuticals, textiles, retail, and FMCG.