Premium Plast shares hit a lower circuit after making a muted debut at ₹51.45 apiece on NSE SME

Premium Plast Limited shares made a muted debut on the NSE SME platform Emerge on Monday, October 28. The shares listed at ₹51.45 apiece on the NSE were up 5% from the issue price of ₹49 apiece.

The retail investors, who were allotted at least one lot of 3,000 shares, would have made a minimum profit of ₹7,350 (₹2.45 x 3000) after the stock started trading on the exchange. However, soon after listing, the stock declined up to 5% to hit the lower circuit limit at ₹48.9 apiece.

After the stock began to trade, 16.17 lakh company shares changed hands on the NSE in the initial 15 minutes. The total trading value stood at ₹8.25 crore. The company's total market capitalisation stood at ₹93.38 crore.

Premium Plast IPO details

Premium Plast IPO was worth ₹26.2 crore. The book-built issue consisted of a fresh issuance of 53.46 lakh shares. The price band for the issue was fixed at ₹46 to ₹49 per share.

The minimum lot size for retail investors' applications was fixed at 1 lot or 3,000 shares, which aggregated to an investment of ₹1,47,000.

Premium Plast IPO was booked 38.92 times during the three-day bidding which opened on Monday, October 21, and closed on Wednesday, October 23. Investors across categories placed bids for over 19.75 crore shares compared to the 50.76 lakh shares offered for subscription.

The non-institutional investors (NII) quota of the IPO was booked 19.67 times, the retail investors’ quota 65.36 times, and the SME issue 6.73 times in the Qualified Institutional Buyers (QIB) category.

The company plans to use the money raised via the public issue to expand its existing manufacturing facility located at Pithampur, Madhya Pradesh. The proceeds will also be used to fund the company's capital expenditure requirements for setting up a rooftop grid solar power plant at the company’s manufacturing facility. A portion of the proceeds will also be used to pay outstanding borrowings, general corporate purposes and offer related expenses.

Premium Plast Limited, founded in 1995, designs, manufactures, and supplies exterior and interior plastic components. The company's components are directly supplied to commercial vehicle manufacturers. The company also manufactures industrial plastic parts and packaging components used in a variety of industries.