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by IANS |
Mumbai, Oct 6 (IANS) Shares of Rukmani Devi Garg Agro Impex made a weak debut on the stock market on Monday, listing at Rs 79.20 per share on the BSE SME platform.
This was about 20 per cent lower than the issue price of Rs 99 per share.
The disappointing listing came as a surprise to many investors, especially after the stock had shown a strong trend in the grey market.
Before listing, the company’s shares were trading at a premium of more than 36 per cent over the IPO price, according to data from Investorgain.
The company had launched its initial public offering (IPO) to raise Rs 23.5 crore entirely through a fresh issue of shares.
The IPO was open for subscription from September 26 to September 30, with a price band of Rs 93 to Rs 99 per share.
Investors could bid for a minimum of 1,200 shares and in multiples thereafter.
The public issue received strong investor response and was subscribed more than 28 times.
Non-institutional investors showed the highest interest, subscribing their portion over 57 times.
Rukmani Devi Garg Agro Impex plans to use the IPO proceeds for meeting its working capital requirements and general corporate purposes.
Fedex Securities was the book-running lead manager for the issue, while Bigshare Services Private Limited acted as the registrar.
Incorporated in 1998, Rukmani Devi Garg Agro Impex Limited operates in the agro-processing industry, focusing on the import and export of agricultural products, food processing, and related services.
The company procures commodities such as wheat, mustard, coriander, maize, flax seeds, and soybeans from more than 500 agents across Rajasthan and Madhya Pradesh, who work closely with the farming community.
As of March 31, the company owns three warehouses with a capacity of 20,000 metric tonnes (MT) and leases two more with an additional capacity of 20,000 MT.
It also operates a processing unit in RIICO over an area of 2,290 square metres, with a storage capacity of 3,500 MT.
The company’s distribution network includes 118 dealers and distributors across India.
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