Very few companies are successful in achieving such a feat, which the SME company did on the day of its listing in the stock market on Tuesday. The company doubled investors’ money during the trading session. The name of this company is Millworks Technology. Which started about 5 years ago. The company’s debut in the stock market on Tuesday was quite spectacular. After listing with a premium of 90 per cent over the issue price, the share price increased by almost 100 per cent over the issue price. This means that investors’ money completely doubled. Let us try to understand this in terms of statistics.
Company’s explosive start
Millworks Technology made a strong debut in the stock market on Tuesday, July 21. Its shares were listed on the BSE SME platform at Rs 628.90 per share, which is 90 percent more than the issue price of Rs 331. At present, there is a rise of almost 100 percent in the company’s shares. The company’s shares are trading at Rs 660.30. This spectacular listing follows the overwhelming response to the company’s Initial Public Offering (IPO), which was subscribed 193.14 times during the bidding period from July 14 to July 16.
There was tremendous response
In this issue of Rs 160.34 crore, huge bids were received for 67,96,30,000 shares as against 35,18,800 shares offered. Retail investors played an important role in this demand, who subscribed the reserved portion for themselves 216.46 times. Non-institutional investor category also showed a lot of interest and their quota was booked 194.05 times. This IPO involved a fresh issue of 48.44 lakh equity shares and there was no ‘offer-for-sale’ component in it. Its price was fixed in the range of Rs 315 to Rs 331 per share. The lot size was fixed at 400 shares, with retail investors having to apply for a minimum of two lots (800 shares), which required an investment of Rs 2,64,800 at the upper price band.
This is how you doubled your money
As we told you that it was necessary to invest in two lots in the issue. This means that 800 shares had to be purchased. The price of one share was Rs 331. This means that the price of 800 shares was Rs 2,64,800. The company’s shares reached Rs 660.30 during the trading session. This means that the value of 800 shares became Rs 5,03,120. This means that investors made a profit of Rs 2,38,320.
Where will the company spend the money
Before the listing, the market mood regarding Millworks Technologies was quite positive. According to Investorgain and IPO Watch, the gray market premium (GMP) was around Rs 395 per share, indicating a listing gain of around 120 per cent over the issue price. However, the limit on gain from SME IPO is fixed at 90 percent. The bidding for Anchor Investor was completed on July 13, in which the company had raised approximately Rs 44 crore from nine entities. Which include Rajasthan Global Securities and Evergrow Capital Opportunities Fund. The company plans to use the net proceeds from the new issue for expansion and operational needs. Out of this, Rs 61.03 crore has been earmarked for purchasing plant and machinery, Rs 81.50 crore for working capital needs and the remaining amount for general corporate purposes.
