Shivalic Power Control shares list at 211% premium at ₹311 on NSE SME platform

Shares of the company started trading at ₹311 per share on the NSE SME platform against the issue price of ₹100 per share, reflecting gains of 211%.

The stock rallied further up to 5% to hit a high of ₹325.9 per share on heavy buying by investors. More than 27 lakh shares of the company changed hands on the bourse. The traded value was ₹84 crore.

Shares of the electric panel manufacturer later retreated to touch a low of ₹297 per share.

The stock was trading at ₹300 at 10.20 AM, up by 200% from the issue price but down 3.54% from the listing price. The market valuation stood at ₹723.47 crore.

The electric control panel manufacturer launched its maiden public offer on June 24 to raise ₹64.32 crore. The issue closed on June 26. Following the closure of the bidding window, the company announced the share allotment status on June 27.

The public offer of Shivalic Power Control comprised a fresh issue of 64.32 lakh shares. The company fixed the IPO price at ₹95 to ₹100 per share. The minimum lot size for retail investors was 1,200 shares.

Shivalic Power Control IPO garnered a robust response from investors as it was subscribed by a whopping 257 times on the final day of bidding.

According to exchange data, investors placed bids for 109.77 crore shares worth ₹10,997 crore against 42.67 lakh shares on offer.

The retail individual investors’ quota was subscribed 230 times. RIIs placed applications for 49.10 crore shares against 21.33 lakh shares offered to them.

The Qualified Institutional Buyers’ (QIB) category was booked 170.32 times. QIBs placed applications for 20.76 crore shares against 12.19 lakh shares on offer.

Non-Institutional Investors’ portion was subscribed 436.37 times as applications for 39.90 crore shares were received against 9.14 lakh shares on offer.

The company had raised ₹18.29 crore from anchor investors in the pre-bid round. The company allotted 18,28,800 shares at a price of ₹100 per share to seven funds.

Shivalic Power Control has proposed to utilise the IPO proceeds to meet working capital requirements, construct a new assembly line and meet capital expenditure for machinery and finance inorganic acquisitions.

According to the RHP, Shivalic Power Control would use ₹1.82 crore to build a new assembly line and ₹5.81 crore to purchase new machinery. The company has earmarked ₹5.75 crore inorganic acquisitions to fund growth.

It will use ₹30.02 crore of the IPO proceeds to meet working capital requirements.

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