Shiv Texchem Shares Debut On BSE SME At 44% Premium Over Issue Price

Shares of Shiv Texchem Ltd. made a strong debut on the exchanges, listing at a premium of 44%. The stock listed at Rs 239 apiece on the BSE SME platform, against the upper limit of the price band of Rs 166.

Retail investors, allotted a single lot of 800 shares in Shiv Texchem IPO, would have incurred a profit of Rs 58,400 over an investment of Rs 1,32,800. Shares of Shiv Texchem Ltd. fell 5% from the listing price to trade at an intraday low of Rs 227.05 apiece on BSE.

The Grey Market Premium (GMP) of Shiv Texchem IPO was Rs 65 per share, just ahead of the listing on Tuesday. According to InvestorGain, shares of Shiv Texchem Ltd. were expected to list at Rs 231, marking a 39.16% premium over the issue price of Rs 166.

Investors must note that GMP is highly speculative, and does not indicate the real performance of the stock.

Shiv Texchem's IPO, open from October 8 to  October 10, aimed to raise Rs 101.35 crore through an entirely fresh issue of 61.06 lakh shares. The BSE SME IPO's price band was set at Rs 158 to Rs 166.

Shiv Texchem IPO was booked 156.62 times, driven by strong demand from non-institutional investors (NIIs). 

NIIs booked their segment of the SME issue 455.93 times. The public offer was subscribed 86.7 times in the Qualified Institutional Buyers (QIBs) category and 68.27 times in the retail category.

Shiv Texchem IPO share allotment status was finalised on October 11.  The registrar for the SME issue was Link Intime India Private Ltd.

Shiv Texchem plans to use the money raised via the public issue to meet long-term working capital requirements and general corporate purposes.

Shiv Texchem, founded in 2005, is an importer and distributor of hydrocarbon-based secondary and tertiary chemicals.  The company sources chemicals from countries such as China, Taiwan, South Korea, Kuwait and Qatar.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.