Deem Roll Tech shares list at 55% premium to IPO price

Shares of steel and alloy maker Deem Roll Tech Ltd made an impressive debut on the National Stock Exchange of India (NSE) on Tuesday by listing at a premium of 55% to the issue price.

The stock was listed at ₹200 per piece on the SME platform of NSE, Emerge, against the issue price of ₹129 per equity share, implying a premium of 55% to the issue price.

Deem Roll Tech shares advanced further to hit a high of ₹210 per share, up by 5% from the listing price.

According to exchange data, more than 15.79 lakh shares changed hands till 12:19 pm. The traded value was more than ₹32.37 crore.

Deem Roll Tech IPO subscription

The maiden public offer of Deem Roll Tech received a strong response from the investors as the IPO was subscribed 246 times on the final day of the bidding on February 22.

In total, applications for 53,04,86,000 equity shares were received in three days against 21,54,000 shares on offer. The issue opened for subscription on February 20.

According to exchange data, the non-institutional investors’ (NII) portion of the initial public offering was subscribed 291 times, garnering demand for 31,38,45,000 equity shares against 10.77 lakh shares on offer.

The retail individual investor category was subscribed 179.46 as bids for 19.44 crore shares were received against the quota of 10.77 lakh shares. The public issue did not have any reserved portion of issue size for the qualified institutional buyers (QIBs).

The company finalised the basis of IPO share allotment on Friday, February 23, and credit of shares into the demat account of allottees was done on February 26.

Bigshare Services Private Limited was the registrar for the public issue while Securities Private Limited served as the sole book-running lead manager.

Deem Roll Tech IPO Details

The ₹29.26-crore public offer of Deem Roll Tech comprised a fresh issue of 22.68 lakh shares and no offer for share component by the promoter or existing shareholders of the company. The Deem Roll Tech IPO price was fixed at ₹129 per equity share of ₹10 face value each.

The lot size for retail investors was 1,000 shares amounting to a minimum investment of ₹1.29 lakh. The minimum lot size for high net worth individuals (HNIs) was 2,000 shares, aggregating to ₹2.58 lakh.

Deem Roll Tech has proposed to utilise the IPO proceeds for capital expenditure of its existing manufacturing facility in Gujarat's Mehsana. Part of the funds will also be used to finance general corporate purposes.

About Deem Roll Tech

Deem Roll Tech is a leading player in the steel and alloy rolls manufacturing industry. It owns and operates three manufacturing units located at Mehsana and Ahmedabad in Gujarat and Hooghly in West Bengal.

The company is also a leading exporter in the segment. The company exports its steel and alloy rolls to the United States, Germany, Europe, South Africa, the Middle East, Oman, Saudi Arabia, Nepal and Bangladesh.