Weak listing: Essex Marine shares list at 20% discount to SME IPO price

Essex Marine IPO listing

The shares of Essex Marine made a weak market debut on August 11, listing at Rs 43.20 apiece on the BSE SME platform. This marks a discount of 20 percent over the IPO price of Rs 54 apiece.

The listing discount comes despite shares trading flat at the IPO price in the grey market. Ahead of listing, the unlisted shares of the company were trading with zero grey market premium (GMP) over the IPO price at Rs 54 apiece.

After getting listed on the stock exchange, the shares of the company tumbled 5 percent to hit the lower circuit at Rs 41.04 apiece. The stock is now down 24 percent from its IPO price of Rs 54 per share. It currently has a market capitalization of around Rs 63 crore, as seen at 10.15 am.

The Kolkata-based seafood exporter and processor had approached the capital markets to raise Rs 23 crore through a fresh issue of nearly 43 lakh shares. The IPO attracted strong investor interest during its three days of public bidding, being subscribed nearly 3 times its offer size between August 4 and August 6.

Also read: BLT Logistics shares list at 21% premium to SME IPO price

Investors could bid for a minimum of 2,000 shares, requiring a minimum investment of Rs 1.08 lakh, and in multiples thereafter. At the given listing price, one lot of shares would be worth Rs 86,400. This implies a notational loss of Rs 21,600 per lot for the allotted investors.

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