Envirotech Systems Makes Strong Debut As Shares List At 90% Premium Over Issue Price
Envirotech Systems' initial public offering to raise Rs 30.24 crore from the market was booked over 92 times during the bidding process.
Shares of Envirotech Systems Ltd. made a stellar debut on the National Stock Exchange, listing at a premium of 90%. The stock listed at Rs 106.40 apiece on the NSE SME platform, against the upper IPO price band of Rs 56 per share. At the opening, investors allotted a single lot in Envirotech Systems IPO would be sitting on a profit of Rs 1,00,800 on their investment of Rs 1.12 lakh.
Envirotech Systems stock further gained 5% to hit an upper circuit at Rs 111.70 apiece on the NSE.
The initial public offering to raise Rs 30.24 crore from the market was booked over 92 times during the bidding process. The company received bids for 30.24 crore shares against 32.92 lakh shares on offer.
The issue was subscribed 64.16 times in the retail category with bids for 10.56 crore shares against 16.46 lakh shares available.
Non-institutional investors applied for more than 13.28 crore shares against the 7.06 lakh shares set aside for them. The portion reserved for NIIs was booked 188.13 times.
The Qualified Institutional Buyers portion was subscribed 68.11 times with applications for 6.4 crore shares against 9.4 lakh shares available.
The company offered shares in the IPO at a price band of Rs 53 to Rs 56 apiece. Bigshare Services Pvt. served as the registrar for the IPO.
Proceeds from the IPO will be used by Envirotech Systems Ltd. to purchase land to set up a factory. Further, a portion of the money raised will also be used to fund capital requirements and general purposes.
Envirotech Systems IPO GMP
The grey market premium on the Envirotech Systems stock stood at Rs 47 just ahead of the listing. This means the grey market expected the stock to list at Rs 103 per share, against the upper IPO price band of Rs 56 apiece. The GMP is often seen as an indicator of how a stock may perform at its listing.
However, investors must note that GMP is highly speculative and may not always be an accurate prediction.
Envirotech Systems specialises in noise measurement and control solutions for industrial and commercial applications.
Founded in 2007, the company has its registered office in New Delhi and a manufacturing unit in Greater Noida.
