Diensten Tech lists at 140% premium at ₹240 on NSE Emerge platform

Diensten Tech Ltd made a dream debut on the NSE SME platform, Emerge, on Wednesday with its shares listing at a bumper premium of 140% against the issue price.

The company's shares opened for trading at ₹240 apiece against the issue price of ₹100 per share, reflecting a 140% premium.

The stock rose further by 5% to hit a high of ₹252 per share from the listing price after investors bought it.

More than 7.32 lakh shares of the company changed hands on the NSE SME platform in the first five minutes of trading. The market valuation of the company stood at ₹208.17 crore.

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New Delhi-based Diensten Tech Ltd is an IT consultancy and software training services provider. The company provides IT professional resourcing, IT Consultancy, IT Training and Software AMC services.

The company is promoted by JK Traders Limited, Vipul Prakash, Tina Prakash and Abhishek Singhania. Promoters held around 95% stake in the company ahead of the IPO, which has come down to around 69% after the public issue.

The IT consultancy service provider launched its initial public offering on June 26 to raise a total of ₹22.08 crore from public investors. The issue which comprised a fresh issue of 22.08 lakh shares closed on July 28.

The company fixed the IPO price band at ₹95 to ₹100 per share. The minimum lot size was 1200 shares and the minimum investment required was ₹1,20,000 for retail investors.

According to exchange data, Diensten Tech's IPO was booked 53.94 times. Applications for 7.92 crore shares worth ₹792.90 crore were received against 14.7 lakh shares on offer.

Qualified Institutional Buyers’ quota was booked 9.6 times as bids for 40.33 lakh shares were received against 4.2 lakh shares on offer. The company earlier allotted 6.27 lakh shares to anchor investors to raise ₹6.28 crore at a price of ₹100 per share. The company had set aside 50% of the net issue size for institutional investors.

Retail individual investors’ portion was booked 35 times. The retail applicants placed bids for 2.63 crore shares against 7.34 lakh shares on offer.

Non-Institutional Buyers’ portion was booked 154 times with bids for 4.89 crore shares against 3.15 lakh shares on offer.

The company had set aside 35% of the net issue for retail investors and 15% for NIIs.

The IT consultancy company has proposed using IPO proceeds to meet working capital requirements, settle liabilities related to business acquisition, and for other general corporate purposes.

The company has proposed to utilise ₹3.81 crore for clearing outstanding payments related to the acquisition of the Professional Services and Training Division of J K Technosoft Ltd in April 2022.

It has proposed to use 1,177 crore of the IPO proceeds to meet working capital requirements.

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