Refractory Shapes makes stellar debut, shares list on NSE Emerge at 142% to IPO price

Refractory Shapes Ltd made a dream debut on stock exchanges on Tuesday, May 14, listing at a bumper premium of around 142%.

Shares of the company started trading in the open market at ₹75 per share against the issue price of ₹31 per share, reflecting a stellar premium of 141.93%.

Refractory Shapes shares witnessed strong buying by investors and more than 25 lakh shares traded on NSE SME platform, Emerge.

The stock rose further by 5% from the listing price to hit a high of ₹78.75 per share at 10.30 am.

The traded value of shares was ₹19.47 crore while the market capitalisation of the company stood at ₹171.68 crore.

The ₹18.6-crore public offer of the refractories products supplier, which was open for subscription from May 6 to May 9, attracted robust bidding from investors. The issue was booked more than 255 times.

Applications for a total of 101.95 crore shares worth ₹3,160 crore were received against 39.96 lakh shares on offer. The Qualified institutional buyer's portion was booked 90 times. Non-Institutional Buyers’ category was subscribed 464 times. Retail investors’ quota was booked by nearly 260 times.

Refractory Shapes produces refractory products that are used in a diverse range of industries such as refineries, steel, petrochemicals, fertilizers, glass and cement.

Refractory Shapes would utilise ₹4.29 crore of IPO proceeds to finance capital expenditure. It has planned civil construction for expansion of existing manufacturing unit at Wankaner, Gujarat.

It will use ₹2.5 crore for buying plant and machineries for expanding existing manufacturing unit at Wankaner. The company has proposed to use ₹7 crore for repayment of all or certain of borrowings. It will also use money for the purchase of commercial vehicles.