Popular Foundations makes tepid debut, shares list flat at ₹37 apiece on BSE SME platform

Shares of Popular Foundations Limited made a muted debut on the BSE SME platform on Tuesday, September 24, as the company’s shares listed flat at ₹37 apiece compared to its issue price.

After listing, the stock declined to hit the 5% lower circuit at ₹35.15 apiece.

Popular Foundations raised ₹19.87 crore through its IPO. The BSE SME issue was booked 9.26 times during the three-day bidding. The IPO subscription opened on September 13 and closed on September 19. Investors across categories placed bids for over 4.72 crore shares of Popular Foundations against a net issue size of 51 lakh shares. The non-institutional investors (NII) quota was booked 3.64 times and the retail investors’ quota was oversubscribed nearly 14.88 times.

Popular Foundations said that it plans to use the proceeds of the public issue for repayment of all or a portion of its outstanding borrowings. The company will also use the money raised via the public issue for funding the working capital requirements of the company and for general corporate purposes.

Popular Foundations IPO was a fixed price issue comprising fresh issuance of 53.7 lakh shares aimed at raising ₹19.87 crore. Popular Foundations IPO issue price was fixed at ₹37 per share, with a lot size for an application of 3,000 shares.

Popular Foundations Limited, established in 1998, specialises in engineering and construction services and also offers end-to-end solutions in the construction sector. The company provides its services to sectors such as factories, educational institutions, and commercial and residential projects. The company is strategically focused on non-residential and non-government construction projects in and around Chennai.