Valencia India shares make disappointing market debut, list at 20% discount to SME IPO price

The shares of Valencia India made a weak market debut on July 3, listing at Rs 88 apiece on the BSE SME platform. This marks a discount of 20 percent over the IPO price of Rs 110 apiece.

Notably, the unlisted shares of the company were trading flat at the IPO price with zero grey market premium (GMP), ahead of listing, according to data on Investorgain.

The company had launched its maiden public issue to raise Rs 48.95 crore from the capital markets. The SME IPO saw decent interest from investors, being fully subscribed in its three days of bidding between June 26 and June 30. The price band for the IPO, which comprised a fresh issue of 40 lakh shares and an OFS worth Rs 4.95 crore, was set at Rs 95-110 apiece.

Investors could bid for a minimum of 1,200 shares, requiring an investment of Rs 1.32 lakh, and in multiples thereafter. At the listing price, the shares in one lot would be worth Rs 1.056 lakh. This implies a loss of Rs 26,400 per lot.