ABS Marine Services share price doubles on listing in a blockbuster debut

ABS Marine Services Ltd, a small and medium enterprise (SME) offering marine-management services, made a blockbuster trading debut on Tuesday, May 21, with the stock listing at a 100% premium on the Emerge platform of the NSE.

The ABS Marine Services stock opened the session at ₹294 apiece, just double of its initial public offering (IPO) price of ₹147 per share. Within minutes of trade, the stock rallied further to hit an intraday high of ₹304, but slipped thereafter to hit the 5% lower circuit of ₹279.3 apiece on profit booking.

Also Read: Awfis Space Solutions, GSM Foils set to hit the market this week

As the lot size of the ABS Marine Services IPO was 1,000 shares, successful investors who were allotted shares in the public issue would have been sitting on a profit of at least ₹1.47 lakh (₹147 x 1,000) as soon as trading began in the stock on Tuesday.

Notably, a solid start was expected for ABS Marine Services shares as the IPO had closed with a bumper 145 times oversubscription after four-day bidding during 10-15 May. The company had received bids for 62.67 crore shares against 42.99 lakh shares on offer, according to the data available on NSE.

Huge interest was seen in the non-institutional investors’ (NII) category, with subscription of over 271 times. The quota reserved for retail investors was booked 112.63 times, while the qualified institutional buyers’ (QIB) category was oversubscribed by 109.3 times.

To recall, the ABS Marine Services IPO was a 100% book-built issue that aimed to raise a total of ₹96.29 crore.

The IPO comprised fresh issuance of 65.5 lakh shares, including 4.1 lakh shares for market makers and an anchor allocation of 18.41 lakh shares with no offer-for-sale (OFS) component.

The price band of the ABS Marine Services IPO was fixed in the range of ₹140-147 per equity share of face value of ₹10 each, with the minimum bid amount of 1,000 shares.

Just ahead of the launch of the IPO, the company had raised ₹27.06 crore from a total of 9 anchor investors by allotting 18.41 lakh shares at an offer price of ₹147 apiece.

According to ABS Marine Services, the money raised via the IPO would be used for the acquisition of offshore vessels for business expansion and working capital requirements. A portion of the proceeds shall also be used for general corporate purposes.

Incorporated in 1992, ABS Marine Services owns five vessels and manages another 12 for government as well as private companies as of December 2023. The company is also engaged in the business of offering crew management services.

To invest in IPOs on Upstox, open a free demat account today.