Vishnu Prakash R Punglia Ltd, an infrastructure company, embarked on its stock market journey with an impressive debut on Tuesday. However, the soaring start was met with a subsequent decline in share prices.
Strong Market Debut: Vishnu Prakash’s shares made their market entry on the National Stock Exchange (NSE) at ₹165.00 per share, reflecting a robust premium of 66.66% compared to the issue price of ₹99 per share. Similarly, on the Bombay Stock Exchange (BSE), the company’s shares were listed with a 65% premium, trading at ₹163.30 each.
Early Volatility: Despite the enthusiastic beginning, Vishnu Prakash’s share price experienced a decline of over 10% shortly after the listing.
Successful IPO: The company’s initial public offering (IPO), valued at ₹308.88 crore, garnered significant attention from investors during the subscription period from August 24 to August 28. Vishnu Prakash’s IPO witnessed an overall subscription rate of 87.82 times. The retail category saw a subscription rate of 32.01 times, while the Qualified Institutional Buyers’ (QIB) category was notably oversubscribed at 171.69 times. Non-Institutional Investors (NII) also displayed strong interest, with a subscription rate of 111.03 times. The IPO was offered within a price band of ₹94 to ₹99 per equity share, with a lot size of 150 shares.
Utilization of Proceeds: Vishnu Prakash R Punglia Ltd intends to deploy the funds raised from the IPO for various purposes. These include financing capital expenditure requirements for the acquisition of equipment and machinery, supporting the company’s working capital needs, and fulfilling general corporate objectives.
Current Market Status: As of 10:15 am, Vishnu Prakash R Punglia shares were trading at ₹149.50 apiece on the BSE, representing an 8.45% decrease from their listing price.
