The shares of Luxury Time made a bumper debut on stock markets on December 11, listing at Rs 155.80 per share on the BSE SME platform. This marks a 90 percent premium over the SME IPO price of Rs 82 per share.
The company debuted with a market capitalization of nearly Rs 129 crore.
The listing premium is slightly lower than grey market estimates. Ahead of listing, the unlisted shares of the company were trading with 120.73 percent grey market premium (GMP) over the IPO price, according to data on Investorgain and IPO Watch.
Luxury Time had launched its initial public offering (IPO) earlier this month to raise Rs 18.74 crore through a fresh issue of shares worth Rs 15 crore and an offer for sale (OFS) of shares worth Rs 3.74 crore by the existing investors.
The company had set a price band of Rs 78-82 per share for the IPO. Investors could bid for a minimum of 1,600 shares, requiring an investment of nearly Rs 2.5 lakh at the upper price band, and in multiples thereafter.
The IPO saw strong investor interest during its three days of public bidding, being subscribed 554 times if offer size between December 4 and December 8. Retail investors took the lead in the subscription numbers, booking their allotted quota more than 860 times. The portions kept for non-institutional investors (NII) and qualified institutional buyers (QIB) were subscribed 402.47 times and 205.58 times, respectively.
The New Delhi-headquartered watch service-related tools and equipment distributor aims to spend Rs 2.8 crore of the fresh issue proceeds for setting-up of 4 new retail stores, Rs 9 crore for working capital requirements, and the remainder funds for general corporate purpose.
Incorporated in 2008, the company that serves as the exclusive authorized distributor in India for TAG Heuer, Zenith, Bomberg and Exaequo, the luxury Swiss watches brands, maintained a retail and distribution footprint of over 70 points of sale (POS) across India and two service stores in Mumbai and Delhi, respectively, as per the RHP filing.
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