Deccan Transcon Leasing Shares Hit 5% Lower Circuit After Muted Debut On NSE SME

Deccan Transcon Leasing Ltd. made a tepid debut on Tuesday as the shares of the company opened at Rs 116 apiece, up 7.4% over the issue price of Rs 108 apiece, on the NSE Emerge platform.

After listing, the stock hit 5% lower circuit of Rs 110.2 apiece.

This means that the investors, who bought at least one lot of the issue, will get a total return of Rs 1,39,200, against the investment of Rs 1,29,600, considering the minimum lot size of 1,200 shares in the IPO. The retail investors would have made at least Rs 9,600 (Rs 8 x 1,200) at the listing price.

Ahead of the listing on Tuesday, the grey market premium of Deccan Transcon Leasing was around Rs 55 apiece, indicating a 50.93% gain over the IPO price, according to InvestorGain.

The estimated listing price based on the GMP was Rs 163 per share.

The GMP is an indication of the estimated listing price of an IPO and it’s not the actual listing price.

The initial public offering of Deccan Transcon Leasing Ltd. to raise Rs 65.06 crore was subscribed 102.6 times on the third day, led by demand from non-institutional buyers.

NIIs subscribed 147.76 times the quota allocated for them, while retail investors oversubscribed their share by 127.18 times. Qualified institutional buyers booked 42.07 times the shares allocated for the category.

The IPO consisted of a fresh issue of up to 55.24 lakh equity shares worth Rs 59.66 crore and an offer for sale of up to 5 lakh shares amounting to Rs 5.4 crore. It was open between Sept. 13 and Sept. 19.

The net proceeds from the IPO will be used to procure tank containers, the company said in its Red Herring Prospectus. A portion of the funds will also be used for meeting working capital requirements. The rest will be used for general corporate purposes.

Deccan Transcon Leasing Ltd. offers logistics and supply chain solutions to clients in several sectors. Incorporated in 2007, the company provides solutions including domestic tank container logistics, tank fleet management, customs clearance and transportation, and non-vessel operating common carrier services.