Sylvan Plyboard shares list at 20% premium on NSE SME platform

Sylvan Plyboard (India) Ltd made a strong debut on stock exchanges on Monday, July 1. The company's shares listed at a premium of 20% on the NSE SME platform. The stock opened at ₹66 apiece, against the IPO price of ₹55 per share.

After a strong listing, shares of Sylvan Plyboard rallied as much as 4.84% to hit an intraday high of ₹69.2 apiece in early deals.

Sylvan Plyboard IPO, a fixed price issue of ₹28.05 crore, was available for public subscription from June 24-26. The SME IPO received an encouraging response from investors during the bidding round.

Sylvan Plyboard public offer was bought over 84 times at the close of the 3-day subscription window on June 26. The public issue garnered bids for 40.7 crore shares against 48.44 lakh shares on offer. In the retail category, the public issue was booked 84.11 times, with bids for 20.37 crore shares against 24.22 lakh shares offered. The IPO was booked 75.42 times under the others category as applicants bid for 18.26 crore shares against 24.22 lakh shares on offer.

Sylvan Plyboard IPO allotment was finalised on June 27 and then the company credited shares to the Demat accounts of successful investors on the next day.

The price band for Sylvan Plyboard's IPO shares was fixed at ₹55 per share. The company had fixed the minimum lot size for making an application at 2,000 shares. The IPO had only a fresh issue component and no Offer-for-Sale (OFS) portion. As part of the fresh issue portion of the IPO, Sylvan Plyboard issued a total of 51 lakh shares to raise ₹28.05 crore.

The company set aside a total of 2.56 lakh shares or 5.02% of the issue size for market maker Black Fox Financial. The market maker provides two-way quotations to ensure liquidity and low basis cost over the counter.

Anand Kumar Singh, Jai Prakash Singh, Shakuntala Singh, Kalyani Singh and M/s Singh Suppliers Private Limited are the promoters of Sylvan Plyboard. Their shareholding in the company pre-IPO stood at 99.80%. After the IPO, the promoter equity holding will come down to 73.53%.

Sylvan Plyboard IPO objective

The proceeds from the IPO will be used by Sylvan Plyboard to meet working capital requirements. The company will spend them on buying additional plants and machinery. A small portion of the IPO proceeds will also be used for general corporate purposes.

About Sylvan Plyboard Ltd

Established in 2002, Sylvan Plyboard manufactures various wood products, such as plywood, block board, flush doors, veneer, and sawn timber in various grades and thicknesses. It has over 220 authorized dealers in 13 states.

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