In a major boost to investor sentiment, shares of Effwa Infra and Research made a stellar debut on the National Stock Exchange (NSE) SME platform today. The stock opened at a whopping ₹155.80 per share, marking a staggering 90% premium over its issue price of ₹82.
The strong listing comes on the back of overwhelming investor interest in the company’s initial public offering (IPO), which was subscribed a massive 313.65 times. The IPO received bids for 131.07 crore equity shares against the total offer of 41.79 lakh shares.
Effwa Infra and Research is engaged in providing engineering, consulting, procurement, construction, and integrated project management services in the water pollution control sector. The company has a strong track record with over 45 completed water management infrastructure projects.
The company had fixed the price band for its IPO at ₹78 to ₹82 per share, and the issue size was ₹51.27 crore. The allotment for the IPO was finalized on July 10, 2024.
The strong listing of Effwa Infra and Research is a positive sign for the SME IPO market, which has seen increased investor interest in recent times. However, it is important to note that the stock market is volatile, and investors should proceed with caution.
Before the listing, the shares of Effwa Infra and Research were trading at a significant premium in the grey market. The grey market premium (GMP) is the unofficial price at which shares are traded before listing. The high GMP indicated strong investor demand for the IPO.
It is worth mentioning that the NSE has implemented a price control cap of 90% on the issue price for SME IPOs during the pre-opening session. This measure is aimed at curbing excessive speculation and ensuring fair pricing for investors.
Investor Sentiment
The strong listing of Effwa Infra and Research is likely to boost investor confidence in the SME IPO market. However, investors should conduct thorough research before investing in any IPO and consider factors such as the company’s financials, business model, and industry outlook.