Despite the negative trend in the domestic stock markets, Neelam Linens and Garments had a successful listing.
The company’s shares began trading on the NSE SME platform at Rs 40.05, which is a 60% premium over its IPO price.
The price band for the IPO was set between Rs 20 and Rs 24 per share. However, shortly after listing, the shares hit a lower circuit limit, meaning they could not fall below a certain price.
Profit Booking and Share Price Drop
After the strong listing, Neelam Linens and Garments’ shares saw some profit booking. The stock dropped by 5%, hitting the lower circuit
and reaching Rs 38.05. According to data from the NSE, a total of 4.20 lakh shares were traded during this time.
Key Details About the IPO
Neelam Linens and Garments’ IPO was open from November 8 to November 12, 2024. The company issued 54.18 lakh new shares, raising Rs 13 crore.
Retail investors had to invest a minimum of Rs 1,44,000 for a lot of 600 shares. The IPO was allocated on November 13, 2024.
The company also raised Rs 3.69 crore from anchor investors. Notably, 50% of the shares allotted to anchor investors have a 30-day lock-in period.
IPO Subscription and Demand
The IPO was extremely popular, receiving nearly 100 times subscription in just 3 days. Subscriptions were as follows:
57.82 times in the retail category
273 times in the non-institutional investor category
15.40 times in the qualified institutional buyers category
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The IPO received a massive response, with nearly 100 times subscription within three days.
Retail investors subscribed 57.82 times, non-institutional investors subscribed 273 times, and qualified institutional buyers subscribed 15.40 times.
The IPO was fully based on new shares. The company raised Rs 3.69 crore from anchor investors, and 50% of these shares are locked in for 30 days.
