VVIP Infratech made a stunning entrance into the stock market today. Its shares started trading at ₹176.70 each on the BSE SME platform, which is 90% higher than the IPO issue price of ₹93. This exciting debut shows how much interest investors had in the company’s initial public offering (IPO).
The IPO, which was open for subscription from July 23 to July 25, was a huge success. It was oversubscribed by an impressive 236.92 times. This means that investors wanted to buy many more shares than were available, showing strong demand for VVIP Infratech.
The company had set the price for its IPO between ₹91 and ₹93 per share. Because of the high demand, the shares listed at a much higher price, reflecting the positive response from the market. VVIP Infratech, which works on real estate projects, plans to use the funds from the IPO to cover its working capital needs, invest in new projects, and for general business expenses.
VVIP Infratech’s strong listing performance is great news for those who bought shares during the IPO. It also highlights the growing interest in real estate companies among investors. However, it’s important for investors to remember that stock prices can change a lot. Even though the stock is performing well now, past results do not guarantee future performance.
The IPO raised ₹61.21 crore by issuing 6,582,000 new shares with a face value of ₹10 each. There was no “offer for sale” component in this IPO, meaning that all shares were newly issued by the company, rather than being sold by existing shareholders.
Share India Capital Services Private Ltd managed the IPO, and Maashitla Securities Private Ltd was the registrar for the offering. The grey market premium for VVIP Infratech’s shares was ₹122 before the listing, suggesting that investors were willing to pay more than the issue price in the unofficial market.
The grey market premium indicates how much more investors were ready to pay for the shares before they officially started trading. The expected listing price was projected to be ₹215 per share, which is 131.18% higher than the IPO issue price of ₹93. This shows a strong investor sentiment towards VVIP Infratech.
As trading continues throughout the day, it will be interesting to see if the share price keeps rising or if it faces any corrections. Investors who bought shares at the IPO price are currently seeing significant gains. However, it’s essential to conduct thorough research before investing and consider long-term prospects and market conditions.
VVIP Infratech’s successful debut is a positive sign for the Indian IPO market, which has been active recently. It also reflects the growing interest in the real estate sector, as more investors look for opportunities in this field