GConnect Logitech shares close 10% higher to issue price, investors gain over ₹12,000 each in debut session
Upstox
3 min read • Updated: April 3, 2024, 7:25 PM
Summary
GConnect Logitech IPO price was fixed at ₹40 per share, with a lot size of 3,000 shares. At Wednesday's closing price, the retail investors, who were allotted shares, were sitting on a profit of at least ₹12,300 on the debut trading day of the stock.
Gconnect Logitech and Supply Chain has given a healthy return to its retail investors despite a muted market debut on Wednesday, April 3. Shares of Gconnect Logitech and Supply Chain Ltd were listed on the BSE SME platform at a 5% premium at ₹42 apiece compared to issue price of ₹40 per share.
However, within an hour, the share price rose further to get locked in the upper price band of ₹44.1, which was 10.25% higher than the IPO price and 5% than the opening price of ₹42 per piece.
Despite the volatility in the broader market, the stock maintained its rally and closed at the upper limit.
The GConnect Logitech IPO was a fixed-price issue. Shares were priced at ₹40 per unit, with a lot size of 3,000 shares for retail investors. This means that retail investors who were allotted shares were sitting on a profit of at least ₹12,300 (₹4.1 x 3,000) on the debut trading day.
In its first trading day, a total of 7.29 lakh shares of GConnect Logitech changed hands on the BSE with a total trading value of ₹3.12 crore. The company’s market capitalisation stood at ₹16.4 crore.
The GConnect Logitech IPO was open for subscription from March 26 to March 28. After the end of the three-day bidding period, the SME IPO was oversubscribed by 57.38 times.
The retail category was subscribed 71.74 times, while the ‘others’ category was overbid by 42.9 times.
The GConnect Logitech IPO was entirely a fresh issuance of 14.01 lakh shares of face value of ₹10 each. The company aimed to raise ₹5.6 crore through the public issue.
The logistics company had planned to use the net proceeds from the IPO for vehicle purchases, financing website development and app designing, as well as for general corporate purposes.
Established in July 2022, GConnect Logitech provides surface logistics services. The service offerings range from bulk load transportation to full truck load (FTL) services and dedicated load solutions.
GConnect Logitech’s clientele includes transport contractors, industrial giants, retailers, traders, and direct customers to serve a broad spectrum of industries including metals, fabrics, FMCG, auto components, chemicals, and pharmaceuticals. As of September 2023, the company had served approximately 24 clients.
The company says that it operates with an asset-light model. It leverages strategic partnerships with third-party providers to access the necessary assets for their operations, ensuring flexibility and adaptability to meet the evolving demands of their clientele.
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