Vivid Electromech IPO listing: SME stock Vivid Electromech listed at a mild premium of 2% over the initial public offering (IPO) price on Tuesday, April 7, surpassing the expectations as signalled by the latest grey market premium (GMP).
Vivid Electromech share price opened at ₹565 on the NSE SME platform as against the IPO price of ₹555, recording an upside of 1.8%. Soon after listing, Vivid Electromech shares extended the rise to hit the 5% upper price band of ₹593.25.
Ahead of the listing, Vivid Electromech IPO GMP today was nil, suggesting that the shares could list at par with the offer price. As of 12 pm, the SME stock was trading 1.80% above the IPO price at ₹565.
Vivid Electromech IPO details
Vivid Electromech IPO received a tepid response from investors as it was booked just 1.06 times at the end of the bidding period. The qualified institutional buyer (QIB) segment was booked the most at 1.95 times, followed by the non-institutional investor (NII) quota at 1.5 times. The retail portion remained undersubscribed at 36%.
The company raised ₹37.12 crore from anchor investors ahead of the share sale.
Vivid Electromech IPO, worth ₹130.54 crore, was a combination of fresh issue of 0.19 crore shares and an offer for sale of 0.05 crore shares. The company plans to use the fresh proceeds, amounting to ₹104.56 crore, for funding capex needs to set up a new manufacturing unit, repayment of certain borrowings, meeting working capital needs and general corporate purposes.
The price band for the SME IPO was fixed at ₹528 to ₹555 apiece. Investors could apply for the offer in lots of 240 shares. The offer was open for bidding from March 25 to March 30, with the allotment of shares finalised on April 2.
The company is a manufacturer of Low-Voltage (LV) and Medium-Voltage (MV) electrical panels and automation systems. The products are used in power distribution, load management, process control, and industrial automation across multiple sectors.
Hem Securities acted as the book-running lead manager, and MUFG Intime India as the registrar of the issue.
