Graphisads slips 4.5% after a flat listing on NSE SME

Ahead of the listing, Graphisads shares were trading flat in the grey market

Graphisads made a weak market debut on December 13, listing at 0.45 percent premium to the issue price of Rs 111. Within minutes of the listing, the stock slipped 4.5 percent to Rs 105.95 on the NSE SME platform.

The weak start was expected as Graphisads was trading flat in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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Compared to other SME IPOs, the issue received a tepid response. The offer was subscribed 3.86 times and the retail portion booked 5.52 times.

Graphisads initial public offering opened for subscription on November 30 and closed on December 5. The price for the IPO, purely a fresh issue, was fixed at Rs 111 a share, with the company raising Rs 53.41 crore.

The proceeds will be used to repay loans, meet working capital requirements and for general corporate expenses.

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First Overseas Capital was the book-running lead manager, Kfin Technologies was the registrar and Rikhav Securities was the market maker for the issue.

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Graphisads is an integrated marketing, advertising, and communications agency. It provides advertising services on the work orders received by the government sector, private sector and other public sector entities.

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