Shares of Lakshya Powertech Ltd on Wednesday staged a bumper debut on the NSE SME platform, Emerge. The SME stock opened at Rs 342 and got listed at a premium of 90 per cent over its initial public offering (IPO) price of Rs 180. According to the recently changed norms, listing gains on SME IPOs is capped at 90 per cent.
As the session progressed, the market debutant went on further to hit its 5 per cent upper price band of Rs 359.10. At this price, it has gained 99.5 per cent from its issue price of Rs 180.
"The price band cap is (+)(-) 5 per cent for the first 10 sessions when the stock trades in trade-to-trade segment. Thereafter the circuit band is fixed by the exchange which could be 10 per cent to 20 per cent," said market expert Arun Kejriwal.
Around 8.26 lakh shares changed hands on NSE today at a traded value of Rs 29.18 crore, commanding a market capitalisation (m-cap) of Rs 362.11 crore.
The SME IPO was open for subscription between October 16 and October 18. Lakshya Powertech IPO was booked over 573.46 times with bids for more than 108.31 crore shares, against 18.88 lakh shares on offer.
The company said it will use the money raised via the public issue to settle debts and fund its working capital needs. A part of the IPO proceeds will also be used for general corporate purposes, it added.
The IPO comprised fresh issue of 27,72,800 equity shares. Ahead of its IPO, the company had raised Rs 13.39 crore from anchor investors. The board allotted 7,44,000 lakh shares at Rs 180 per share to 11 anchor investors.
The allotment of shares for Lakshya Powertech IPO was finalised on October 21. Kfin Technologies Ltd served as registrar for the issue.
Established in 2012, Lakshya Powertech is an engineering, procurement, construction, and commissioning service provider, specialising in mechanical and electrical services. It also offers operations and maintenance services to gas-fired power plants and large-scale power generation projects. The firm caters to clients from both the public and private sectors.