A new listing loses 35% of its value on debut despite a 44x subscription to its IPO

The IPO had seen strong investor interest. The issue was subscribed 43.66 times at the close of bidding on February 25. It received bids for over 46.28 crore shares against 1.06 crore shares on offer. By Meghna Sen Shares of Shree Ram Twistex made a weak debut on the bourses on Monday, March 2, listing at a sharp discount to their issue price. The stock opened at ₹68 on the NSE, marking a discount of 34.62% to its IPO price of ₹104. On the BSE, it listed slightly higher at ₹70. The IPO had seen strong investor interest. The issue was subscribed 43.66 times at the close of bidding on February 25. It received bids for over 46.28 crore shares against 1.06 crore shares on offer. The retail portion was subscribed 76.63 times, while the Non-Institutional Investors category saw a subscription of 220.3 times. The Qualified Institutional Buyers segment was booked 3.94 times. The ₹110.24 crore book-building issue opened for subscription on February 23 and comprised entirely a fresh issue of 1.06 crore shares. The price band was fixed at ₹95 to ₹104 per share. Proceeds from the IPO will be used to set up a 6.1 MW solar power plant and a 4.2 MW wind power plant for captive consumption, along with loan repayment and working capital requirements. A portion will also be allocated for general corporate purposes. Shree Ram Twistex manufactures a range of cotton yarns, including compact ring-spun and standard carded variants in both combed and carded categories. Its products cater to knitting and weaving applications and are used in end products such as denim, terry towels, shirting and sheeting fabrics, sweaters, socks, bottom wear, home furnishings and industrial textiles.