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Swashthik Plascon shares surge 40% on BSE SME debut

EditorPollock Mondal
Published 12/05/2023, 02:41 AM
© Reuters.

Swashthik Plascon Limited made a strong entry into the stock market today, with its shares opening on the BSE SME platform at ₹120.10 (Rs 1 = $0.012), marking a significant 40% rise from the initial public offering (IPO) price of ₹86. The company's debut reflects robust investor confidence and a successful IPO that concluded last week.

During the subscription period, which ran from November 24 to November 29, Swashthik Plascon attracted considerable attention from investors, recording an overall subscription rate of 15.43 times by the third day. The demand was particularly strong among retail investors, who subscribed 13.58 times their allotted share, while non-institutional buyers showed an impressive appetite, subscribing 35.76 times. Qualified Institutional Buyers (QIBs) also participated actively with a subscription rate of 3.42 times.

The capital raised through this IPO, amounting to ₹407.6 million, is earmarked for several strategic initiatives:

  • Establishing new manufacturing facilities.
  • Setting up a solar power plant to support operations.
  • Acquiring equipment for enhancing existing facilities.
  • Addressing working capital requirements and other corporate expenses.

Shreni Shares Private Limited played a crucial role as the book-running lead manager for the IPO. Meanwhile, Bigshare Services Pvt Ltd was responsible for managing the registration processes effectively.

Nikunj Stock Brokers acted as the market maker for Swashthik Plascon's IPO, indicating positive investor sentiment with a grey market premium (GMP) of +15. This suggested an anticipated listing price close to ₹101 per share, which the company has comfortably surpassed on its first day of trading.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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