Newmalayalam Steel shares list flat, at ₹90 on the NSE SME: Decline 5% thereafter to hit lower circuit

Stock Market Today: Newmalayalam Steel shares listed at ₹90 without any premium on the NSE SME. The share price post listing declined 5% to hit lower circuit.

The Newmalayalam Steel public issue that opened on December 19, 2024 and ended on December 23, 2024 had received storng response. The Newmalayalam Steel IPO was subscribed 50.69 times. The public issue subscribed 87.7 times in the retail category, indicating strong expectations by the investors towards seeing listing gains

The same was indicated by the grey market premium of the GMP for Newmalayalam Steel IPO. The Newmalayalam Steel IPO GMP stood at +30. This indicated that the Newmalayalam Steel shares were available in the grey market ₹30 above the issue price or at ₹30 premium over the issue price. 

The Price band for the Newmalayalam Steel Ipo had been set at ₹85- ₹90 per share. Hence the GMP indicated that market participants were anticipating listing of Newmalayalam Steel shares at ₹120, 33.33% above the issue price of ₹90( upper end of the price band of the Newmalayalam Steel IPO)

Hence the Newmalayalam Steel shares  listeing on NSE SME on December 27, was below the expectations of market particiants as indicated by the GMP

Newmalayalam Steel IPO was a book built issue of ₹41.76 crores and involved entirely a fresh issue of 46.40 lakh shares. The objective of the IPO was that  Newmalayalam Steel planned to use the proceeds of the IPO towards IT / Technological Upgradation of existing manufacturing facility. For expansion of the existing solar facility for power generation. ForFunding of expenditure towards civil construction of new factory shed cum storage facility within the existing factory premises situated at Kerala. For the Advertising, Marketing and Brand Building expenses.Also some part of the proceeds was to be used for Funding incremental working capital requirements of the Company and further to meet the Issue related expenses too.

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