Jaipur based jewellery company Advit Jewels made a striking debut on the domestic stock market, rewarding its investors with a handsome gain on the very first day of trading. On the BSE, the stock listed at 187 rupees, a 35.50 percent premium over its 138-rupee issue price. On the NSE, the shares opened even higher at 188.90 rupees, which is 36.88 percent above the issue price. By listing day, the company's market capitalisation stood at 814.27 crore rupees.
Subscribed more than 212 times
The IPO opened on 23 June and closed on 25 June, drawing heavy participation from investors. By the third and final day on 25 June, the Advit Jewels issue had been subscribed a total of 212.63 times. What stood out was that investors across every category piled in enthusiastically.
NII investors led the charge
The strongest appetite came from non-institutional investors (NII), whose reserved portion was subscribed 536.38 times. The quota set aside for qualified institutional buyers (QIB) was subscribed 174.98 times, while retail investors booked their share 95.30 times over. The issue had been fully subscribed on Tuesday, the very first day it opened.
Shares allotted on 29 June
Advit Jewels raised 165 crore rupees through the offering. The company had fixed a price band of 130 rupees to 138 rupees per share. Retail investors were allotted 100 shares in one lot. The allotment of shares was completed on Monday, 29 June.
A fully fresh issue
The entire IPO was a fresh issue of 1.20 crore new shares, with no offer for sale (OFS) component. The company plans to use 65 crore rupees of the proceeds to repay debt and another 65 crore rupees to meet working capital needs, with the remaining amount going towards general corporate purposes.
Disclaimer: This article is written for information purposes only. Always consult your financial advisor before making any investment or taking any financial risk.
