SA Tech Software India makes stellar debut, shares list at 90% premium to IPO price

Making a bumper debut on NSE SME platform, shares of IT consultancy SA Tech Software India Ltd listed at a premium of 90% against the IPO price on Friday.

According to exchange data, shares of the company started trading at ₹112.1 apiece on the NSE SME platform, Emerge, reflecting gains of 90% from the issue price of ₹59 per share.

After listing, the stock gained further to hit a high of ₹117.7 per share, up by 99% from the issue price and by 5% from the listing price, amid heavy buying by investors.

More than 3 lakh shares of the company changed hands on the bourse. The traded value was ₹ 3.44 crore. The market capitalisation of the company stood at ₹153.68 crore.

SA Tech Software India is an IT consultancy firm and an arm of the US-based SA Technologies Inc. It offers services such as cloud infrastructure, mobile app development, machine learning, IoT solutions, generative AI, software quality assurance, data science, and analytics. The company employed 356 workers as of September 2023.

SA Tech Software India IPO was open for subscription from July 26 to July 30. The book-building issue was valued at ₹23.01 crore.

The NSE SME IPO of SA Tech Software India comprised a fresh issue of 39 lakh shares. The company had fixed the IPO price band at ₹56 to ₹59 per share. The minimum lot size was 2,000 shares and the minimum investment required was ₹1,18,000 for retail investors.

At the close of bidding, SA Tech Software India IPO was booked 621 times, riding on strong demand from retail and non-institutional investors.

Retail individual investors’ portion was booked 621 times. The Non-institutional investors’ (NIIs) category was booked nearly 1,179 times. The qualified institutional buyers’ (QIBs) quota was subscribed 201 times.

The company has raised ₹6.38 crore from the anchor investors. The IT company allotted 10,82,000 shares to six fund schemes at a price of ₹59 per share.

SA Tech Software India has proposed to use the IPO proceeds to prepay or repay outstanding borrowings of the company. The proceeds will be used to finance working capital requirements and other general corporate purposes.