Swashthik Plascon lists at 40% premium over IPO price on BSE SME

Ahead of the listing, Swashthik Plascon shares were trading at a 17 percent premium in the grey market

Swashthik Plascon made a decent debut, listing at a 39.6 percent premium to the IPO price, on December 5. The stock opened at Rs 120.1 against the issue price of Rs 86 on the BSE SME platform.

Ahead of the listing, the Swashthik Plascon shares were trading at a 17 percent premium in the grey market, which is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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The issue had received a decent response from investors. The offer was subscribed 15 times, the retail portion was booked 13.58 times, non-institutional investors bid 35.76 times and qualified institutional buyers picked 3.42 times their allotted quotas.

Swashthik Plascon’s public offer opened for subscription on November 24 and closed on 29th. The price band for the issue was fixed at Rs 80-86 per share. Through the IPO, which was entirely a fresh issue of 47.39 lakh shares, the company raised Rs 40.76 crore.

It will use the net proceeds to fund capital expenditure for developing manufacturing facilities and installation of plant and machinery, to set up a solar power plant, purchase of plant and machinery at the existing manufacturing facility and general corporate purposes.

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Shreni Shares was the book-running lead manager, Bigshare Services was the registrar, and Nikunj Stock Brokers was the market maker for the issue.

Swashthik Plascon manufactures PET (polyethylene terephthalate) bottles for various applications such as pharmaceuticals, liquor, FMCG packaging, household, dishwashing liquids and repellent dispensers. They also produce PET preforms for soft drink bottles, packaged drinking water bottles, and juice bottles.