Shares of Global Surfaces Ltd listed on the bourses at a premium on Thursday.
On the NSE, the stock was listed at ₹164 per share, 17.14 percent higher than the issue price, and on the BSE, the stock was listed at ₹163 per share, 16.43 percent higher than the issue price.
The stock hit a high of ₹171.15, and a low of ₹163, on the BSE.
On Day 3 of subscription, the public issue received fantastic response from non-institutional investors. The qualified institutional buyers' (QIBs) portion picked up response on the final day, and retail investors' portion continued to follow the positive trend. The issue was subscribed 12.21 times.
The company fixed the price band at ₹133 to 140 per equity share for the proposed initial public offer. Investors could bid for a minimum of 100 equity shares and in multiples thereafter.
The public offering, which has a face value of Rs10 per equity share, consists of a fresh issue of 85.20 lakh equity shares and offer for sale (OFS) of up to 25.5 lakh equity shares by selling shareholders.
Promoter Mayank Shah will sell 14 lakh shares through the OFS process, and Sweta Shah will sell 11.5 lakh shares.
According to the Red Herring Prospectus (RHP), the net proceeds from the issue will be utilised for investment in wholly owned subsidiary Global Surfaces FZE for part-financing its capital expenditure requirements of setting up the manufacturing facility in Dubai and general corporate purposes.
Unistone Capital Private Ltd is the sole lead manager of the issue, and Bigshare Services Private Ltd is the registrar.
According to Prashanth Tapse, Research Analyst, Sr VP Research, Mehta Equities Ltd, the IPO managed to receive strong response in the volatile markets.
“We remain neutral on the company as the issue was aggressively priced while investors should also note the initial listing will be in the 'T' group. Hence we advise allotted investors should look to book profits if any,” said Tapse.