NR Vandana Textile shares decline 5% after flat stock market debut on NSE SME

NR Vandana Textile IPO listing: Shares of NR Vandana Textile were off to a tepid start on the Indian stock market on Wednesday, June 4, listing at par to their initial offering price (IPO) price. NR Vandana Textile share price debuted at ₹45, offering no gains or losses to investors at listing.

However, the stock soon came under selling pressure after listing, hitting the 5% lower price band of ₹42.75 apiece.

The listing, however, was lower than what the market anticipated. According to market sources, the grey market premium (GMP) of NR Vandana Textile's IPO stood at ₹9 ahead of the listing. At this level, the listing of NR Vanadana Textile shares was expected to be around ₹54 per share, a gain of nearly 20%. However, the stock opened flat.

NR Vandana Textile IPO Details

NR Vandana Textile IPO was open for bidding from May 28 to May 30. The SME IPO, worth ₹27.89 crore, was entirely a fresh issue of 61.98 lakh shares.

NR Vandana Textile IPO price band was set at ₹45 per share. The minimum lot size for an application was 3,000, requiring a minimum investment by a retail investor of ₹1,26,000.

The IPO was massively subscribed during the three-day period, garnering 101 times bids. The qualified institutional buyers (QIB) quota was booked 36.54 times while the non-institutional investors portion was subscribed 126.70 times.

The company, which specialises in the design, manufacturing, and wholesale distribution of cotton textile products, including sarees, salwar suits, and bed sheets, plans to use the proceeds from the IPO for funding working capital requirements, payment of debt and general corporate purposes.

Marwadi Chandarana Intermediaries Brokers acted as the book-running lead manager of the NR Vandana Textile IPO, while Cameo Corporate Services Limited was the registrar.

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