The shares of Smarten Power Systems made a strong market debut on July 14, listing at Rs 144 apiece on the NSE Emerge platform. This marked a premium of 44 percent over its SME IPO price of Rs 100 apiece.
The listing premium is significantly higher than the 15 percent grey market premium (GMP) with which unlisted shares of the company were trading in the grey market, ahead of listing, according to data on Investorgain.
The inverter-maker had launched its initial public offering to raise over Rs 50 crore through a fresh issue of 40 lakh shares worth Rs 40 crore, and an offer-for-sale of 10 lakh shares worth Rs 10 crore. The company had set Rs 100 as the offer price.
Investors could apply for a minimum of 1,200 shares, requiring a minimum investment of Rs 1.2 lakh, and in multiples thereafter. At the listing price, one lot of 1,200 shares would be worth Rs 1.728 lakh. This implies a profit of nearly Rs 52,800 per lot for the allotted investors.
The SME IPO saw strong investor interest during its three days of public bidding, being subscribed over 5 times its offer size between July 7 and July 9.
Gurugram-based Smarten Power Systems plans to utilise fresh issue proceeds for purchase of movable assets of the production line of battery manufacturing unit, working capital requirements, repaying debt, and capital expenditure requirements.
Arihant Capital Markets was the book running lead manager for the Smarten Power Systems IPO.
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