Faalcon Concepts makes a stellar debut, shares list at 53% premium to IPO price
Upstox
3 min read • Updated: April 26, 2024, 12:19 PM
Summary
Since investors had to bid for a minimum of 2,000 shares in the Faalcon Concepts IPO, Friday’s listing meant that successful bidders who were allotted shares in the offer would have been sitting on a profit of at least ₹54,000 (₹27 x 2,000) as soon as trading began in the stock.
Faalcon Concepts Ltd made a bumper trading debut on Friday, April 26, with the stock listing at an over 53% premium on the BSE SME platform compared to its initial public offering (IPO) price.
The small and medium enterprise stock opened the session at ₹92 apiece on the BSE SME platform, up 53.2% against its IPO price of ₹62 apiece. However, within minutes of trade, the share price hit the 5% lower circuit to trade at ₹90.25 apiece.
Since investors had to bid for a minimum of 2,000 shares in the Faalcon Concepts IPO, Friday’s listing meant that successful bidders who were allotted shares in the offer would have been sitting on a profit of at least ₹54,000 (₹27 x 2,000) as soon as trading began in the stock.
Market experts were expecting a strong listing for Faalcon Concepts on the back of strong response garnered by its IPO.
The ₹12.09-crore Faalcon Concepts IPO, which was open for subscription during April 19-April 23, was subscribed over 71 times. The IPO had received bids for 13.21 crore shares against 18.52 lakh shares on offer.
The portion reserved for retail investors was overbooked by 47.17 times, with bids received for over 4.36 crore shares against 9.26 lakh shares on offer.
The non-institutional investors’ (NII) category was oversubscribed by 93.37 times. NIIs applied for 8.64 crore shares against 9.26 lakh shares allocated for them.
The Faalcon Concepts IPO was a fixed-price issue. The offer consisted entirely of a fresh issuance of 19.5 lakh shares, with no offer-for-sale (OFS) component. Shares were offered at ₹62 apiece in a lot of 2,000 units.
Navigant Corporate Advisors Ltd was appointed as the book-running lead manager for the Faalcon Concepts IPO, while Beetal Financial and Computer Services (P) Ltd was the registrar. Alacrity Securities was designated as the market maker for the IPO.
Faalcon Concepts said that it planned to use the net proceeds from the IPO to fund various objectives including financing capital expenditure for buying facade structural equipment. The company also intends to use a portion of the funds to partially finance the working capital requirements.
Incorporated in 2018, Falcon Concepts is engaged in designing, engineering, fabrication and installation of façade systems.
Faalcon Concepts' product portfolio includes glazing/curtain walls, aluminium doors and windows, skylights, canopies, frameless glazing, MS structures, stone cladding, metal cladding, and roofing.
It works on both residential and commercial buildings including shopping malls, hotels and hospitals. The company serves customers across Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Karnataka, Gujarat, Punjab, and Delhi.