Sylvan Plyboard makes bright debut with 20% premium on NSE SME

The issue was subscribed a massive 84 times, with retail investors subscribing 84.11 times

Shares of Sylvan Plyboard made a positive start on its stock market debut after it listed at Rs 66, commanding a premium of 20 percent over the issue price of Rs 55 on the NSE SME platform.

The listing gains, however, miss grey market estimates as shares were trading at a premium of 49 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.

Follow our live blog for all the market updates

The Rs 28-crore public offer is a fresh issue of a fresh issue of 51 lakh equity shares. The offer received an impressive investor response over three days from June 24 to June 26. The issue was subscribed a massive 84 times, with retail investors subscribing 84.11 times followed by non-institutional investors who bought over 75 times their allotted quota. Qualified institutional buyers (QIBs) didn't purchase.

Read more: Shivalik Engineering files draft prospectus for IPO, plans fresh issue of Rs 335 crore

Incorporated in 2002, it manufactures a range of wood products, including plywood, block board, flush doors, veneer, and sawn timber in various grades and thicknesses. The company has 223 authorized dealers across 13 states. Its product range includes plywood, block boards, flush doors, veneer, and sawn timber.

The objectives of the issue include funding capital expenditure for the purchase of additional plant and machinery, meeting working capital requirements, covering issue expenses, and addressing general corporate purposes.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.