Vdeal System made a strong debut on the NSE SME with its share price listing at ₹170, a 52% premium over its IPO offer price of ₹112. Soon after the listing, the stock climbed even higher to ₹178.50.
Investors were hopeful for good returns, as shown by the high subscription rates and the Grey Market Premium (GMP). The IPO was heavily oversubscribed, with 71.38 times overall. The retail category saw 76.70 times subscription, while the other categories had 61.46 times by August 29, 2024.
According to investorgain.com, the GMP for Vdeal System’s IPO increased from +20 to +30 between the IPO’s start and September 3. This means the shares were trading at a ₹30 premium in the grey market. Considering the GMP, the expected listing price was ₹142 per share, which is 26.79% higher than the IPO price of ₹112.
The Vdeal System IPO was a fixed-price offering worth ₹18.08 crore, including the fresh issue of 16.14 lakh shares. Retail investors needed to apply for at least 200 shares, requiring a minimum investment of ₹134,400. High Net Worth Individuals (HNIs) had to invest in at least two lots, totaling ₹268,800.
Founded in December 2009, Vdeal System Limited provides integrated electrical and automation solutions. The company plans to use the funds from the IPO for:
- Meeting working capital needs
- Repaying part of its secured and unsecured loans
- General corporate purposes and covering IPO costs
The IPO was managed by Affinity Global Capital Market Private Limited, with Cameo Corporate Services Limited as the registrar and Black Fox Financial as the market maker.
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