Share Samadhan makes weak debut, shares lists at 1% discount on BSE SME platform

Bucking the trend of stellar listings, shares of small and medium enterprise (SME) Share Samadhan Ltd made a weak trading debut on Monday, September 16, with the stock listing at 1% discount on the BSE SME platform.

Share Samadhan stock opened the session at ₹73.05 apiece, down 1.3% compared to its initial public offering (IPO) price of ₹74 per share. Within minutes after the session opened, the share price dropped 5% further to hit the day’s low of ₹69.40.

Since the minimum bid quantity to apply for the Share Samadhan IPO was 1,600 shares, bidders who were allotted shares in the primary issue would be sitting on listing losses of at least ₹1,520 (₹0.95 x 1,600) as soon as the stock started trading on exchanges.

Share Samadhan IPO details

The ₹24.06-crore Share Samadhan IPO was open for subscription from September 9 to September 11.

The issue was subscribed 14.59 times during the three-day bidding period, with the company receiving applications for nearly 3.16 crore shares compared with 21.65 lakh shares on offer.

The non-institutional investors’ (NII) category was the most subscribed at 22.44 times. The retail investors’ portion was subscribed 18.04 times, while the qualified institutional buyers’ (QIB) portion was 2.66 times.

The Share Samadhan IPO was a 100% book-built issue made up entirely of a fresh issuance of 32.51 lakh shares.

Price band for the IPO was set at ₹70 to ₹74 per share, whereas the lot size for an application was 1,600 shares.

Ahead of the launch of the IPO, Share Samadhan had also raised ₹6.83 crore in its anchor investor round. The board of directors of the company at its meetings held on September 6 finalised allocation of 9.23 lakh equity shares to four anchor investors at a price of ₹74 apiece.

The list of investors included names like Pine Oak Global Fund, Neomile Growth Fund - Series I, Meru Investment Fund PCC and Zeta Global Funds (OEIC) PCC.

The company proposes to utilise the funds raised through the IPO to meet the expenses for investment in technology, cover expenses for unidentified acquisition for the company (In India or Abroad), to meet the working capital requirements of the company, to meet the issue expenses and for general corporate purposes.

About Share Samadhan Ltd

Share Samadhan Ltd, previously known as Tiger Island Hospitality Pvt. Ltd, was incorporated in 2011. It is India’s largest platform for recovery of unclaimed investments. It offers a wide range of services like handling IEPF claims, duplicate issue of shares, transmission of shares, recovery of unclaimed provident funds/insurance/mutual funds, inoperative bank deposits, etc.

The company has three main business lines -- investment retrieval services through Share Samadhan Ltd, wealth protection services through Wealth Samadhan Pvt. Ltd and litigation funding solutions through Nyaya Mitra Ltd.