Associated Coaters makes decent debut, shares list at 17% premium on BSE SME

Associated Coaters Ltd shares listed at a premium of 17% on BSE SME platform on Thursday, making a debut on stock markets on a strong note.

Shares of the company started the trade at ₹142 per share on the BSE SME platform against the issue price of ₹121 per share, reflecting gains of 17%.

The stock moved in range of ₹149 per share to ₹134.90 per share in morning deals. More than 1.2 lakh shares of the company traded on the bourse in early deals.

The stock was trading at ₹134 per share at 10:25 AM, up by 11% from the issue price but down 5% from the listing price. The market capitalisation stood at ₹18.24 crore.

Kolkata-based Associated Coaters Ltd provides services for pre-treatment and powder coating of aluminium extrusions in the architect and real estate industry. The company is promoted by Jagjit Singh Dhillon and Navneet Kaur.

The company launched a public offer on May 30 to raise around ₹5.11 crore from investors. The IPO comprised a fresh issue of 4.22 lakh shares. The company fixed the IPO price at ₹121 per share. The minimum lot size was 1000 shares for retail investors. The minimum investment for retail investors was ₹121,000.

Of the net issue size of 3,56,000 equity shares, Associated Coaters had reserved 50% of the issue or 1.78 lakh shares for retail investors and the rest 1.78 lakh shares for non-retail investors.

Associated Coaters IPO subscription

The public issue of Associated Coaters Ltd was open for subscription from May 30 to June 3. The public offer received strong demand from retail investors.

According to exchange data, Associated Coaters Ltd IPO was subscribed more than 317 times. Bids for 13.21 crore shares worth ₹1598 crore were received against 3.56 lakh shares on offer.

Retail investors’ portion was booked nearly 495 times with bids pouring in for 8.81 crore shares against 1.78 lakh shares on offer.

Non-retail investors’ quota attracted applications for 4.26 crore equity shares against 1.78 lakh shares on offer for subscription. Qualified institutional buyers (QIBs) placed bids for 13.62 lakh shares. Non institutional investors placed bids for 4.27 crore shares.

The company announced the share allotment status on June 4. Investors can check the share allotment status on the website of IPO registrar Bigshare Services Pvt Ltd.

Associated Coaters has proposed to utilise the IPO proceeds for capital expenditure towards installation of plant and machinery in its existing premises and meet working capital requirements.

The company has proposed to spend ₹1.45 crore for installation of plant and machinery and ₹2 crore for working capital needs. It reported revenue of ₹3.58 crore in FY2022-23 against ₹1.39 crore in FY2021-22.

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