SPP Polymer shares list at a 6% premium on NSE SME, stock hits 5% lower circuit after listing; check details

SPP Polymer Ltd shares listed at a premium of 6% on the NSE SME platform on Tuesday, September 17, but soon dropped 5% to hit the lower circuit limit.

Shares of SPP Polymer opened at ₹63 per share, reflecting gains of 6% over the issue price of ₹ 59 per share. Soon after listing, the stock declined 5% from the listing price to hit the lower circuit at ₹59.85 on the NSE SME platform, erasing almost all the gains.

More than 4.5 lakh shares of the company changed hands on the bourse. The traded value was ₹2.88 crore, and the market valuation stood at ₹92.12 crore.

SPP Polymers raises ₹24.49 crore through IPO

SPP Polymers Ltd raised a total of ₹24.49 crore through its public offer, which was open for subscription from September 10 to September 12. The public offer was a fresh issue of 41.5 lakh shares. The price of the IPO was fixed at ₹59 per share. The minimum lot size was 2,000 shares, and the minimum amount of investment required was ₹1,18,000 for retail investors.

Interactive Financial Services Ltd was the book-running lead manager. Kfin Technologies is the registrar for the IPO.

The public offer of SPP Polymers was subscribed more than 43 times, riding on strong retail demand. The issue garnered applications for 17.05 crore shares against 39.40 lakh shares on offer.

Retail individual investors’ quota was booked nearly 60 times. The non-retail investors’ portion was booked 22 times. Bids for 4.4 crore shares were received from qualified institutional investors and non-institutional investors against the quota of 19.7 lakh shares.

According to the RHP, SPP Polymers will use the IPO proceeds for loan repayment, funding capital requirements, and other general corporate purposes. SPP Polymer plans to allocate ₹7.75 crore for loan repayment. As of August 31, the company’s total outstanding under loan facilities was ₹18.50 crore.

The company will utilise ₹9.86 crore to fund working capital requirements and ₹5.87 crore for general corporate purposes.

SPP Polymer produces HDPE/PP woven fabric and bags, non-woven fabrics and bags, and PP Multifilament yarn. It also offers packaging solutions to B-2-B manufacturers in various industries, such as cement, sugars, chemicals, food grains, agriculture, and polymers. It has a manufacturing facility in Pantnagar, Uttarakhand.