SPP Polymer shares began trading on 17 September with a modest 7% premium over the IPO price, listing at ₹63 per share against the issue price of ₹59 on the NSE SME platform. The debut performance was less impressive than expected, particularly when compared to grey market estimates, where shares were trading at a 25% premium. Investors looking to buy shares online may find this performance below grey market speculation but still promising for long-term prospects.
The grey market, which operates as an informal system where shares are traded before the official subscription opens, had higher hopes for SPP Polymer. Despite grey market trading suggesting a 25% premium, the actual listing gains were more muted. Nevertheless, investors who buy shares online may still see value in the stock, especially considering its solid backing from retail buyers and the promising future plans of the company.
The ₹24.49 crore public offer, which was fully a fresh issue of 41.5 lakh shares, saw strong interest from investors. The issue was subscribed 43.29 times over three days, with retail investors leading the way, buying nearly 60 times their allotted portion. Non-institutional investors also showed significant interest, purchasing 22 times their reserved quota. However, qualified institutional buyers (QIBs) did not participate in the offering. This strong demand reflects the increasing enthusiasm of retail investors looking to buy shares online, especially in promising SMEs.
Incorporated in 2004 and based in Rudrapur City, Uttarakhand, SPP Polymer manufactures a variety of products including HDPE/PP woven fabric and bags, non-woven fabrics and bags, as well as multifilament yarn. Their diverse product portfolio makes them a key player in the manufacturing industry. For those looking to invest in stocks, SPP Polymer's solid background and wide product offerings may provide an attractive opportunity, particularly given their recent market entry.
The company plans to utilise the net proceeds from the IPO in line with its implementation schedule. The funds will be used primarily to repay loans, address working capital requirements, and meet general corporate needs. Investors aiming to buy shares online may find the company's plans for financial stability and growth appealing, making it a potentially lucrative share market investment.
Retail investors were instrumental in the strong subscription of SPP Polymer's IPO. Their confidence in the company's potential contributed significantly to the stock's debut performance. Those planning to buy shares online might take note of this trend, as retail-driven momentum often indicates broader market confidence. Despite falling short of grey market expectations, the stock's 7% premium listing shows solid market interest.
While SPP Polymer's initial performance was below grey market predictions, the stock still managed to make a positive impact with a 7% premium. This outcome highlights the potential for growth and sustained interest among retail and non-institutional investors. For those looking to invest in stocks, particularly SMEs with strong fundamentals and clear growth strategies, SPP Polymer remains a compelling choice. The stock's trajectory, driven by market demand and solid business operations, makes it a good candidate for long-term share market investment.
SPP Polymer's debut may be just the beginning of a promising journey in the stock market, and investors considering a buy shares online strategy might want to keep an eye on its future developments.
For android only