Bumper SME listing: Trident Techlabs debuts at 180% premium over issue price

Profit booking soon trickled into the counter post listing, pulling the stock down 5 percent as investors rushed too book the stellar listing gains.

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The stock of Trident Techlabs made a bumper debut on bourses on December 29, listing at a 180 percent premium over its IPO price. The stock opened at Rs 98.15 on the NSE SME platform against an issue price of Rs 35.

The stock, however, went down 5 percent soon after its debut as investors rushed to book stellar listing gains.

The Street had projected a bumper listing for the stock, looking at the robust response its public issue had received. The IPO was booked 502.64 times, with retail investors bidding 1,000 times their reserved portion. The portion allotted for non-institutional investors was also subscribed over 800 times.

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The shares commanded more than 114 percent premium in the grey market, an unofficial ecosystem, where stocks are traded from the IPO allotment and continue until the listing day. Investors track the grey market premium as a way to gauge the estimated listing price.

The Rs 16.03-crore public offer, entirely a fresh issue of 45.8 lakh shares, opened for subscription on December 21 and concluded on December 26, with a price of Rs 33 to Rs 35 per share.

The company proposed to use the IPO proceeds in consulting and technical services in system-level electronic design, chip-level electronic design, embedded design, hydraulic/pneumatic systems, system modelling, reliability and quality, design automation, power electronics, PCB design, and electromagnetic simulations.

Trident Techlabs operates across two verticals - engineering solutions and power system solutions - and provides technology-based solutions to the aerospace, defence, automotive, telecommunications, semiconductor, and power distribution sectors.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.