New Delhi: Subam Papers share price of Rs 142 on stock market debut at Bombay Stock Exchange Small and Medium Enterprises (BSE SME) segment on Tuesday, October 08, 2024 translated to loss of 6.6% for the company’s Initial Public Offer (IPO) allottees. Unfortunately, disappointed investors made losses by investing in the Rs 93.70 crore public issue. The shares listed at discount price. After the stocks made debut, Subam Papers share price continued to decline and traded at Rs 138 apiece by 10: 30 am.
While, Subam Papers IPO GMP during the bidding process had indicated lising gains. This is an eye opening for retail investors who blindly invest in SME IPOs by just looking at the premium shares get in the grey market.
Subam Papers IPO price band was Rs 144-152 per share, while the issue price was Rs 152 apiece. The bidding process had opened on September 30 and closed on October 03, 2024.
GMP Fell In Run Up To Subam Papers Listing Day
Earlier, the firm’s shares’ Grey Market Premium (GMP) during the bidding process had signaled Subam Papers IPO listing gains. But after the public issue was closed for subscription, its GMP continuosuly fell. And eventually, investors made losses. Albeit, the premium which a company’s shares get in the grey market can never be considered as an official figure or a definite signal and Subam Papers IPO proves just that.
How Will Subam Papers Use IPO Proceeds ?
The paper manufacturing company had stated earlier that it would use IPO proceeds for general corporate purposes and capital expenditure funding. As the bidding process was entirely fresh issue of equity shares, promoters wont take home the cash raised.
Subam Papers IPO Subscription Status
After the issue had closed for biddings, Subam Papers IPO Subscription Status had stood 92x its total size, according to Chittorgarh. Retail investors had oversubscribed the issue 48 times the allotted quota. While, Subam Papers IPO Non-Institutional Investors’ subscription status stood 243x. Qualified Institutional Buyers’ (QIBs) quota on the other hand stood 57 times oversubscribed.
About The Company
Established in 2005, Subam Papers is a comprehensive packaging solutions provider. The company is known for flagship products likeKraft Paper and Duplex Boards.
