Despite a negative trend in domestic stock markets, Neelam Linens and Garments made a remarkable debut.
Its shares began trading on the NSE SME platform at Rs 40.05, reflecting a 60% premium over the IPO price.
The IPO price band was set at Rs 20-24 per share. However, soon after listing, the shares reached a lower circuit limit, indicating a restriction on further price decline.
Profit Booking Causes Price Dip
Following its strong start, the stock experienced profit booking, leading to a 5% drop. This brought the share price down to Rs 38.05.
According to NSE data, about 4.20 lakh shares were traded during this period.
IPO Details and Fundraising
The IPO was open from November 8 to November 12, 2024. Through the issuance of 54.18 lakh new shares, the company raised Rs 13 crore.
Retail investors were required to invest a minimum of Rs 1,44,000 for 600 shares per lot. The allotment of shares was completed on November 13, 2024.
Additionally, Neelam Linens and Garments secured Rs 3.69 crore from anchor investors, with 50% of these shares subject to a 30-day lock-in period.
Impressive IPO Subscription Rates
The IPO received an overwhelming response, with a nearly 100-times subscription within three days. Subscription breakdown:
Retail Investors: 57.82 times
Non-Institutional Investors: 273 times
Qualified Institutional Buyers: 15.40 times
The entire IPO was based on fresh shares, reflecting strong demand and investor confidence.
The IPO price band was set between Rs 20 and Rs 24 per share. Shortly after the listing, the stock hit its lower circuit limit, meaning it could not fall below a certain price.
