Deem Roll Tech celebrated a remarkable market entry, debuting at a 55 percent premium to its IPO price on February 27. The stock commenced trading at Rs 200 on the NSE SME platform, surpassing the issue price of Rs 129 per share.
Anticipating the listing, the stock commanded a 63 percent premium in the grey market, an unofficial platform where shares trade before IPO allotment and until the listing day. Investors often monitor the grey market premium for insights into the listing price.
The strong market debut was fueled by robust subscription rates. The IPO, open for subscription from February 20-22, garnered overwhelming demand, oversubscribed by 256 times, with the retail portion oversubscribed by 180 times.
Deem Roll Tech successfully raised Rs 29.26 crore through a fresh issue of 22.68 lakh shares. The company intends to utilize the proceeds to expand its manufacturing facility in Mehsana, Gujarat, and fulfill its working capital needs. Remaining funds will be allocated towards general corporate purposes.
Specializing in manufacturing steel and alloy rolls, Deem Roll Tech exports its products to over 10 countries, including the US, Germany, West Asia, and Bangladesh. As of September 30, 2023, the company boasted a clientele of over 340 domestic customers and 30 export customers.
