Mandeep Auto Industries makes weak debut, shares list at nearly 5% discount

Mandeep Auto Industries made a weak debut on the stock exchanges on Tuesday with its shares listing at a discount of nearly 5% discount to the issue price.

Shares of the company started trading at ₹62.25 apiece on the NSE SME platform, Emerge, against the issue price of ₹67 per share, reflecting a loss of 4.75%.

The stock dropped further around 5% from the listing price to hit a low of ₹59.15 per share due to selling by investors. More than 6.56 lakh shares of the company changed hands on the bourse.

Mandeep Auto shares were trading at ₹61 apiece, down by 2.01 % from the listing price, on the NSE at 10.05 am. The market capitalisation of the company stood at ₹63 crore.

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Mandeep Auto Industries launched its maiden public offer on May 13 on the NSE SME platform to raise a total of ₹25.25 crore from public investors.

The offer was a fixed price issue and comprised a fresh issue of 37.68 lakh shares. The company fixed the IPO price at ₹67 per share. The minimum lot size for retail investors was 2,000 shares and the minimum amount of investment was ₹1,34,000 for retail investors.

The automotive and industrial components manufacturer has reserved 1.90 lakh equity shares for market makers. It set aside 17.90 lakh equity shares for retail investors and 17.88 were marked for subscription for non-retail investors such as qualified institutional investors and non-institutional investors.

At the close of bidding on May 15, the SME IPO was subscribed more than 75 times. The public offer garnered bids for 26.94 crore equity shares compared to 35.78 lakh shares on offer for subscription. The retail investors’ quota was subscribed around 89 times while the other category was booked 61 times.

Mandeep Auto Industries finalised the IPO share allotment status on May 16. Investors can check the share allotment status on the website of IPO registrar, Cameo Corporate Services Limited and on NSE portal.

Mandeep Auto Industries has proposed to use the proceeds from the public offer to fund the expansion of its existing facility in Faridabad. It will also use the funds for buying equipment, paying existing debt liabilities and meeting working capital requirements.

Mandeep Auto Industries is a producer of sheet metal components, auto parts, and sprocket gears and machined components. The components find their use in production of automobiles, tractors, machine tools, material handling and earth moving equipment and railways, among others.

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