Strong listing: Spunweb Nonwoven shares list at 57% premium to SME IPO price

Spunweb Nonwoven

Spunweb Nonwoven shares made a strong market debut on July 21, listing at Rs 151 per share on the NSE Emerge platform. This marks a premium of more than 57 percent over its SME IPO price of Rs 96 per share.

The listing premium is higher than grey market estimates. Ahead of listing, the unlisted shares of the Gujarat-based company were trading with a 45 percent grey market premium (GMP) over its SME IPO price at Rs 139 apiece, according to data on Investorgain.

The SME IPO of Spunweb Nonwoven had seen strong investor interest during its three days of public bidding, being subscribed over 233 times its offer size between July 14 and July 16. The company aimed to raise nearly Rs 61 crore through the IPO which entirely comprised a fresh issue of shares at a price band of Rs 90-96 per share.

Investors could apply for a minimum of 1,200 shares, requiring an investment of Rs 1.15 lakh per lot. At the listing price, one lot of shares would be worth Rs 1.81 lakh.

The company aims to spend Rs 39 crore for the working capital requirements of itself and subsidiary SIPL. The remainder IPO money will be utilised for repayment of certain debt, and general corporate purposes.

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Spunweb Nonwoven manufactures polypropylene spunbond nonwoven fabrics primarily used in hygiene, healthcare, packaging, agriculture, roofing & construction, industrial and home furnishing sectors. Diapers, sanitary pads, face masks, PPE kits, shopping bags, grocery bags, fruit cover and crop cover are some of the products made through nonwoven fabrics.

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