Weak market debut: Kaytex Fabrics shares list at 20% discount to SME IPO price

Kaytex Fabrics

The shares of Kaytex Fabrics made a weak market debut on August 5, listing at Rs 144 apiece on the NSE Emerge platform. This marks a discount of 20 percent over the SME IPO price of Rs 180 apiece.

The listing price significantly missed grey market estimates. Ahead of listing, the unlisted shares of the company were trading with a grey market premium of more than 8 percent over the IPO price at Rs 195 apiece.

The maiden public issue of the Punjab-based fast-fashion fabric solutions provider had seen strong investor interest during its three days of public bidding, being subscribed 39.95 times subscription on July 31, the final day of bidding.

The company had launched its IPO to raise Rs 69.81 crore via an initial share sale of 38.78 lakh shares at a price band of Rs 171-180 per share.

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Incorporated in 1996, Kaytex Fabrics also provides fashion products in womenswear (ready-to-stitch suits, co-ord sets, shawls, scarves and stoles) and is looking to utilise issue proceeds for construction of warehouse facility, sales office, purchase of advanced fabric processing system for existing printing, and a dyeing & processing unit in Amritsar. The funds will also be used for incremental working capital requirements, and general corporate purposes.

Socradamus Capital acted as the book running lead manager for the Kaytex Fabrics IPO.

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