Shares Of Divyadhan Recycling Industries Hit 5% Upper Circuit After 31% Premium Listing

Divyadhan Recycling Industries Ltd. shares made a strong debut on the exchanges on Friday. The stock listed at Rs 84 apiece on the National Stock Exchange, marking a premium of 31.25% or Rs 20 over the issue price of Rs 64.

Investors, who received a single lot or 2,000 shares in the Divyadhan Recycling Industries IPO, would have made a profit of Rs 40,000 at the time of the listing over an investment of Rs 128,000.

The stock then moved up and hit the upper circuit of 5% at Rs 88.20 apiece.

Divyadhan Recycling Industries IPO GMP was nil over the issue price on Friday just before the shares got listed. According to InvestorGain, the GMP indicated a flat listing for Divyadhan Recycling Industries IPO, whereas the shares were listed at a premium.

Investors must note that the GMP of an IPO does not indicate its official price and is highly speculative.

Divyadhan Recycling Industries IPO was open for bidding from September 26 to September 30.

The NSE SME IPO got subscribed 41 times over the three days of bidding.

Non-institutional investors (NII) subscribed their quota by 76.4 times, while retail investors applied for 32.43 times the shares reserved for them. The Qualified institutional buyer (QIB) portion was subscribed 29.39 times.

Divyadhan Recycling Industries IPO price band was set between Rs 60 to Rs 64 apiece.

The share allotment of the IPO was done on October 1. The issue registrar was Skyline Financial Services Pvt.

Divyadhan Recycling Industries plans to use the proceeds from the IPO to meet its capital expenditure and general corporate purposes. A portion of the funds will also be used to cover the issue expenses.

Divyadhan Recycling Industries Limited specialises in the production of Recycled Polyester Staple Fibre (R-PSF) and recycled pellets. Founded in May 2010, the company operates its manufacturing facility at Kalyanpur village in Solan district of Himachal Pradesh. The plant has an annual production capacity of 8,030 metric tonnes for fibre and 4,320 metric tonnes for pellets.