Two small-cap initial public offerings made their stock market debuts on Tuesday, October 6, and both listed above their issue prices, continuing the strong IPO activity on Dalal Street this season. Srit India was the clear star of the day, while Shah Investor's Home managed a more modest opening.
Srit India's strong debut
Srit India listed at Rs 148 on the National Stock Exchange, a 13.85 per cent premium over its IPO price of Rs 130, and debuted at Rs 139.80 on the BSE, a 7.54 per cent premium. The buying did not stop there: the stock later climbed to Rs 155.09 on the NSE and Rs 155.05 on the BSE, hitting the upper circuit and translating into a gain of nearly 19 per cent over the issue price, according to The Hindu BusinessLine.
The IT services company's Rs 218.40 crore issue, which was entirely a fresh issue, had seen intense demand during the three-day bidding that ended on September 30, with overall subscription of 125.16 times. Srit India, an IT and IT-enabled services company that builds digital platforms for government bodies and enterprises, has earmarked the proceeds primarily for working capital and capital expenditure. Market capitalisation on listing was around Rs 898.52 crore, Moneycontrol reported.
Shah Investor's Home lists flat-to-positive
Shah Investor's Home listed at Rs 171 on both exchanges, a 2.4 per cent premium over its Rs 167 issue price. The stock later climbed to its upper circuit of Rs 179.55 and was trading at Rs 176.70 at the time of reporting, a gain of nearly 6 per cent over the issue price. Its Rs 90 crore IPO had been subscribed 38.12 times overall, with funds mainly intended for working capital.
Analysts note that the listing-day gains came in below grey-market expectations, which had priced in a premium of around 45 per cent for Srit India ahead of the debut, Moneycontrol reported. For Srit India, market watchers now say investors should track revenue growth, execution of expansion plans and cash-flow generation, while for Shah Investor's Home the focus will be on client-base growth and operating cash flows.
Sources:
- The Hindu BusinessLine: SRIT India, Shah Investors shares make positive debut: What's driving the rally?
- Moneycontrol: SRIT India shares debut at 14% premium on NSE after IPO draws 125x subscription
Srit India's strong debut
Srit India listed at Rs 148 on the National Stock Exchange, a 13.85 per cent premium over its IPO price of Rs 130, and debuted at Rs 139.80 on the BSE, a 7.54 per cent premium. The buying did not stop there: the stock later climbed to Rs 155.09 on the NSE and Rs 155.05 on the BSE, hitting the upper circuit and translating into a gain of nearly 19 per cent over the issue price, according to The Hindu BusinessLine.
The IT services company's Rs 218.40 crore issue, which was entirely a fresh issue, had seen intense demand during the three-day bidding that ended on September 30, with overall subscription of 125.16 times. Srit India, an IT and IT-enabled services company that builds digital platforms for government bodies and enterprises, has earmarked the proceeds primarily for working capital and capital expenditure. Market capitalisation on listing was around Rs 898.52 crore, Moneycontrol reported.
Shah Investor's Home lists flat-to-positive
Shah Investor's Home listed at Rs 171 on both exchanges, a 2.4 per cent premium over its Rs 167 issue price. The stock later climbed to its upper circuit of Rs 179.55 and was trading at Rs 176.70 at the time of reporting, a gain of nearly 6 per cent over the issue price. Its Rs 90 crore IPO had been subscribed 38.12 times overall, with funds mainly intended for working capital.
Analysts note that the listing-day gains came in below grey-market expectations, which had priced in a premium of around 45 per cent for Srit India ahead of the debut, Moneycontrol reported. For Srit India, market watchers now say investors should track revenue growth, execution of expansion plans and cash-flow generation, while for Shah Investor's Home the focus will be on client-base growth and operating cash flows.
Sources:
- The Hindu BusinessLine: SRIT India, Shah Investors shares make positive debut: What's driving the rally?
- Moneycontrol: SRIT India shares debut at 14% premium on NSE after IPO draws 125x subscription
