Mumbai, Dec 15 Riddhi Display Equipment shares made a weak debut on the Indian stock market on Monday, disappointing investors.
The stock was listed on the BSE SME platform at Rs 80 per share, which was a discount of 20 per cent compared to its issue price of Rs 100.
The muted listing came despite expectations of a flat debut in line with the issue price. In the grey market, Riddhi Display’s IPO was trading at a premium of zero, indicating a likely listing around Rs 100.
However, the stock failed to meet those expectations and opened significantly lower.
The Riddhi Display SME IPO received a moderate response from investors during the three-day bidding period.
The issue was subscribed 4.91 times overall. Retail investors showed strong interest, with their portion subscribed nearly eight times.
The non-institutional investor segment was subscribed 1.92 times, while qualified institutional buyers placed bids worth 2.19 times their allotted quota.
The IPO opened for subscription on December 8 and closed on December 10, with the allotment finalised shortly after. The company made its stock market debut on December 15 on the BSE SME platform.
Riddhi Display had set a price band of Rs 95 to Rs 100 per share and raised Rs 24.68 crore through a fresh issue of 25 lakh equity shares.
There was no offer-for-sale component in the IPO. Investors had to apply in lots of 1,200 shares, which meant a minimum investment of Rs 2.4 lakh at the upper end of the price band.
The company plans to use the IPO proceeds to expand its operations. A significant portion of the funds will be used for interior development and the purchase of machinery for a new manufacturing and assembly unit in Lucknow, Uttar Pradesh.
The remaining funds will go toward upgrading machinery and software at its existing Gondal facility in Gujarat, setting up a showroom in Gondal, meeting working capital needs and supporting general corporate purposes.
The IPO was managed by Jawa Capital Services Pvt. Ltd. as the book-running lead manager, while Maashitla Securities Pvt. Ltd. acted as the registrar. Prabhat Financial Services Ltd. served as the market maker for the issue.
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