Silkflex Polymers IPO listing: Shares make debut on NSE SME at 15% premium

Shares of Silkflex Polymers (India) Ltd IPO made a strong stock exchange debut, listing at a premium of more than 15% on NSE Emerge, on Wednesday, May 15.

Silkflex Polymers stock opened at ₹60 apiece on the NSE SME platform, showing 15.32% gains over the initial public offering (IPO) price of ₹52 per share.

As the trade progressed, the stock rallied further to hit an intra-day high of ₹63 on the NSE.

By 10:10 am, after easing some gains, Silkflex Polymers shares were trading at ₹60.05 apiece on the NSE, still up marginally from their opening price.

As per NSE data, 14.64 lakh shares changed hands within 10 minutes of listing of Silkflex Polymers (India) Ltd.

To recall, Silkflex Polymers IPO price was fixed at ₹52 per share, with a lot size of 2,000 shares.

Silkflex Polymers finalised the basis of IPO share allotment on Monday, May 13. The ₹18.11-crore public issue was open for subscription from May 7-10, 2024.

The public issue received a good response from investors during the bidding stage, receiving subscriptions of more than 39 times. The company subsequently announced share allotment to successful applicants on May 13 and also issued refunds to non-allottees on the same day.

Silkflex Polymers' ₹18.11-crore IPO was a fixed-price public offer, comprising a fresh issue of 34.82 lakh shares. The company had fixed the share price at ₹52 per unit and the minimum lot size for an application was 2,000 shares. At this price, retail investors would have invested a minimum of ₹1,04,000 to buy one lot of IPO shares.

After the bidding round which ended on May 10, the Silkflex Polymers IPO was booked about 39 times, receiving bids for 12.98 crore shares against 33.04 lakh shares on offer for public subscription.

Silkflex Polymers intends to use the net proceeds from the IPO towards funding the acquisition of land and meeting the capital expenditure requirements. Besides, the IPO funds will be utilised for purchasing machineries, meeting working capital needs and for general corporate purposes.

Silkflex Polymers India sells textile printing inks and water-based wood coating polymers produced by Silkflex Polymers Sdn. Bhd. Malaysia. The company offers 108 textile printing ink products and 51 wood coating polymer products, with a capacity of 1,000 MT per month.