RK Fashion Accessories shares list at over 2% discount on NSE Emerge; here's how much investors lost per lot

This reflects a discount of 2.44% from the IPO issue price of ₹82 per share.

RK Fashion Accessories IPO: Here's how much investors lost per lot

A lot consists of 1,600 shares. The minimum investment for an individual investor was two lots and cost ₹2,62,400. Investors who received the RK Fashion Accessories IPO allotment lost ₹6,400 per lot, taking the value of their investment to ₹2,56,000, as per the listing price on NSE SME.

The ₹34.99 crore initial share sale was solely a fresh issuance of 42.67 lakh shares, with no offer for sale (OFS) component.

The fresh funds will be used for the following purposes:

• To meet the working capital needs
• To finance the establishment of a new plating facility, the proposed new B2B showroom, the interior and furnishing of the B2C showroom and the inventory cost for the proposed new showroom and stores
• General corporate purposes
• To meet offer expenses

"Our company proposes to utilise the offer proceeds from the fresh issue towards funding the following objects and achieve the benefits of listing the equity shares on the NSE Emerge platform. We believe that the listing of equity shares will enhance our brand name and provide liquidity to the existing shareholders. Listing will also provide a public market for the equity shares in India," the firm said in its red herring prospectus.

Kolkata-based RK Fashion Accessories is engaged in manufacturing through contract manufacturing and wholesale distribution of imitation jewellery, along with the trading of branded cosmetics. It produces and distributes an array of handcrafted jewellery that incorporates elements of traditional design with contemporary styles.