Bumper Debut | Kay Cee Energy & Infra stock lists at 366% premium to IPO price on NSE SME
Kay Cee Energy & Infra stock made a stellar debut, listing at a 366.66 percent premium over the IPO price on January 5. The stock opened at Rs 252 against the issue price of Rs 54 on the NSE SME platform.
Ahead of the listing, the shares were commanding a 160 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.
The bumper listing was on the back of strong subscription figures as Kay Cee Energy & Infra’s public issue was subscribed over 959.5 times from December 28 to January 2. Retail investors picked 1,300 times the portion set aside for them, while high net worth individuals (HNIs) bid 1,600 times the reserved portion.
The Rs 15.93 crore IPO was entirely a fresh issue of 29.5 lakh shares. The price band for the offer was fixed at Rs 51-54 per share. The company will use the net proceeds for working capital requirements worth Rs 13 crore. The remaining funds will be used for general corporate purposes. Lokendra Jain and Shalini Jain are the promoters of the company.
GYR Capital Advisors was the book-running lead manager, Bigshare Services was the registrar and Giriraj Stock Broking was the market-maker for the issue.
A day before the IPO, Rajasthan-based engineering, procurement, and construction (EPC) company, which provides specialised services of construction and commissioning of power transmission and distribution systems, mopped up Rs 4.32 crore from anchor investors at the upper price band on December 27. Ativir Alternative Investment Fund picked Rs 3.31 crore worth of shares in Kay Cee and the remaining shares worth Rs 1 crore were bought by Finavenue Capital Trust Finavenue Growth Fund.