Weak market debut: Sundrex Oil Company shares list at 20% discount to SME IPO price

Sundrex Oil Company IPO

The shares of Sundrex Oil Company made a weak market debut on stock markets on December 30, listing at Rs 68.80 apiece on the NSE Emerge platform. This marks a discount of 20 percent over the SME IPO price of Rs 86 apiece.

The company debuted with a market capitalization of Rs 92.15 crore.

Sundrex Oil Company IPO GMP:

Ahead of listing, the unlisted shares of Sundrex Oil Company were trading flat at the IPO price with zero grey market premium (GMP) at Rs 86 apiece, according to data on Investorgain. The GMP had sharply declined from the 19.77 percent quoted a day before the IPO opened for public bidding.

According to IPO Watch too, the unlisted shares of the company were trading with zero GMP over the IPO price.

About Sundrex Oil Company IPO:

Sundrex Oil Company launched its IPO earlier this month to raise Rs 32 crore entirely through a fresh issue of shares at a price band of Rs 81-86 per share. Investors could bid for a minimum of 3,200 shares, requiring an investment of 2.75 lakh at the upper price band, and in multiples of 1,600 thereafter.

The maiden public issue of the manufacturer and wholesaler of lubricants, greases, and a wide range of industrial products, was fully subscribed during its three days of public bidding between December 22 and December 24. Retail investors showed the most interest in the IPO, booking their reserved portion nearly 2 times.

The company aims to use the fresh issue proceeds to meet the working capital requirements and capital expenditure, as well as prepayment and repayment of all or a portion of certain secured and unsecured loans, general corporate purpose and to meet the offer expenses.

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