Vdeal System shares list at nearly 52% premium on NSE SME platform

Shares of small and medium enterprise (SME) Vdeal System Ltd made a strong trading debut on Tuesday, September 3, listing at a nearly 52% premium on the NSE Emerge platform.

As the minimum bid quantity to apply for the initial share sale was 1,200 shares, the successful bidders are expected to have gained ₹69,600 as soon as trading began in the stock.

The ₹18.08-crore Vdeal System IPO was open for subscription from August 27 to August 29. During the three-day bidding, the SME IPO had witnessed an overall subscription of nearly 71.5 times. The company had received applications for over 10.93 crore shares against 15.32 lakh shares on offer.

While the portion reserved for retail investors was booked 76.7 times, the non-institutional investors' (NIIs) category was oversubscribed by nearly 61.5 times.

Vdeal System IPO was a fixed-price issue comprising a fresh issuance of 16.14 lakh shares, with no offer-for-sale (OFS) component. The company had reserved 50% of the issue (766,200 shares) for retail investors and the remaining 50% for other investors. The shares in the IPO were offered at a price of ₹112 apiece in a lot size of 1,200 units.

Vdeal System had earlier said that it intended to utilize the issue proceeds to meet its working capital requirements for prepayment and repayment of all or a portion of certain secured and unsecured loans availed by it, for general corporate purposes and to meet the offer expenses.

About Vdeal System

Incorporated in December 2009, Vdeal System is a complete solution provider for electrical panels, industrial automation, process instrumentation, and Industrial IoT (Internet of Things).

The company specialises in smart low-voltage (LV) panels, smart medium-voltage (MV) panels, smart variable-frequency drive (VFD) panels, medium-voltage (MV) soft starters, energy management systems (EMS), and smart programmable logic controller (PLC) panels. Its manufacturing unit is situated in Bhubaneswar, Odisha.