Sunlite Recycling Industries' shares list at massive 90% premium over IPO price on NSE SME

Sunlite Recycling specializes in manufacturing copper rods, wires, earthing wires, earthing strips, conductors, and wire rods by recycling copper scrap.

Shares of Sunlite Recycling Industries made a robust start on its stock market debut on August 20 after its shares got listed at Rs 199.5 apiece, a premium of 90 percent over the issue price of Rs 105 on the NSE SME platform.

The listing gains beat grey market estimates where shares were trading at a premium of over 75 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 30.24-crore public offer, which is a fresh issue of 29 lakh shares, received robust investor interest as the issue was subscribed a massive 282 times. Non-institutional investors or high networth individuals were at the forefront, buying 584 times their allotted quota. Retail investors followed, purchasing over 250 times. QIBs, also known as qualified institutional buyers, had bid for over 100 times the portion reserved for them.

Established in 2012, Sunlite Recycling specialises in manufacturing copper rods, wires, earthing wires, earthing strips, conductors, and wire rods by recycling copper scrap. These products cater to the power generation, transmission, distribution, and electronics industries.

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The company plans to use the proceeds from the issue for several key objectives: funding capital expenditure for the installation of new plant and machinery, repaying or prepaying certain borrowings, either in full or in part, and addressing general corporate purposes.

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