Predicting stock market returns is never easy, but some stocks surprise everyone with their performance.
One such example is Airflowa Rail Tech, which made its investors happy on the very first day of its listing.
The company’s IPO was listed on the BSE SME platform and opened at a 90% premium, marking a strong entry in the market.
Strong Demand and Listing Performance
The IPO, worth ₹91.10 crore, was open for subscription between September 11 and 15 and received an overwhelming response with over 300 times subscription.
Shares were listed at ₹266 per share against the issue price of ₹140, giving investors a big gain.
After the listing, the company’s market capitalization reached ₹637.60 crore.
Even before the debut, the grey market had hinted at such strong performance.
The grey market premium (GMP) was at 125%, showing that the stock had high potential for profit.
As per SEBI rules, the maximum listing ceiling for SME IPOs is 90% above the issue price.
Use of IPO Funds
Airflowa Rail Tech, based in Tamil Nadu, was founded in 1998. The company has two plants in Chennai and Kanchipuram.
It manufactures forged and machined components for the railway, aerospace, and defense sectors, along with handling turnkey railway interior projects.
From the funds raised through the IPO:
₹13.7 crore will be used for purchasing machinery
₹59.3 crore for working capital
₹6 crore for loan repayment
The remaining will go towards general corporate needs
Disclaimer: The information shared here is only for educational purposes.
Stock market investments are subject to risks. Always consult an expert before investing.
