Mumbai, July 6 (IANS) Aastha Spintex shares made a weak stock market debut on Monday, listing at Rs 130 apiece on both the BSE and NSE, compared with the IPO issue price of Rs 136.
The listing reflected a discount of 4.41 per cent for investors who were allotted shares in the public issue.
Despite the weak start, investor sentiment improved soon after trading began. Fresh buying interest lifted the stock to its 5 per cent upper circuit limit, reversing early losses and signalling strong demand in the secondary market.
Following the listing, the company’s market capitalisation stood at Rs 598.13 crore.
The Rs 170-crore initial public offering (IPO) of Aastha Spintex was subscribed 4.64 times at the close of bidding last week. The public issue was priced in the range of Rs 125 to Rs 136 per equity share.
The IPO consisted entirely of a fresh issue of equity shares, with no offer-for-sale (OFS) component by existing shareholders.
Aastha Spintex manufactures and trades carded, combed and compact combed cotton yarn, cotton bales and allied by-products. The company operates an integrated spinning and ginning facility in Halvad in Gujarat’s Morbi district.
According to the company, it plans to use Rs 111.51 crore from the net IPO proceeds to fund the acquisition of Falcon Yarns Private Limited. Another Rs 10 crore has been allocated towards meeting the acquired company’s working capital requirements, while the remaining proceeds will be used for general corporate purposes.
BOI Merchant Bankers Limited and PNB Investment Services Limited acted as the book-running lead managers for the public issue.
Aastha Spintex Limited is a Gujarat-based textile company engaged in the manufacturing of contamination-controlled cotton yarn and cotton bales. The company primarily serves the B2B segment, supplying its products to fabric manufacturers, weavers and knitting units.
–IANS
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