Desco Infratech share price: Stock lists at 6.7% premium on BSE SME; check key details

Desco Infratech shares opened at ₹160 apiece, reflecting an increase of 6.67% compared to its issue price of ₹150 per share. After listing, it hit the 5% upper circuit to trade at ₹168 per share.

As the minimum bid size for retail investors was 1000 shares, successful bidders who were allotted shares in the primary issue managed listing gains of ₹10,000 per lot.

Desco Infratech received a strong response from investors during the subscription period. The BSE SME issue was subscribed a whopping 81.92 times.

Non-institutional investors (NIIs) led the demand, subscribing to their portion 229.52 times. The retail investors booked their quota 48.58 times, while the qualified institutional investors (QIBs) part was subscribed 28.76 times.

The initial share sale raised ₹30.75 crore. It was exclusively a fresh issuance of 20.50 lakh shares with no offer for sale (OFS) component. The price band was fixed at ₹147 to ₹150 per share. A lot size consisted of 1,000 shares, costing ₹1,50,000 at the cut-off price.

Desco Infratech IPO objectives

• Fund capital expenditure requirements to set up a corporate office in Surat, Gujarat.
• To meet the company's working capital requirements
• Fund capital expenditure requirements to purchase machineries
• General corporate purposes.

Smart Horizon Capital Advisors Pvt Ltd was the issue's merchant bank, while Bigshare Services was the registrar.

The company's promoters Indiraben Pruthubhai Desai, Hina Pankaj Desai, Pankaj Pruthu Desai, Malhar P Desai and Samarth Pankaj Desai held a 79.29% stake, which was reduced to 58.12% post-issue.

Desco Infratech is engaged in providing infrastructure and maintenance services to city gas distribution divisions in India, including pipeline laying, installation, and commissioning of piped natural gas (PNG) utilised by both commercial and domestic users.

Its business verticals include city gas distribution network projects, water distribution projects, power distribution projects, and other associated works.