United Coftab debut with 7% premium on BSE SME

United Coftab's shares made a promising debut on June 24, listing at Rs 75 on the BSE SME platform, a 7.1% premium over the issue price of Rs 70 per share. This gain, however, fell short of grey market estimates, where shares were trading at Rs 83.

The grey market is an unofficial market where shares trade before the official subscription and continue until listing day.

The Rs 36.29-crore public offering saw strong investor interest, being oversubscribed more than 107 times.

Non-institutional investors led the demand, buying over 114 times their allotted shares, while retail investors purchased 77.22 times their reserved portion.

Founded in 2015, United Coftab manufactures high-quality open-end yarn for the textile industry, serving textile manufacturers, garment exporters, and distributors.

The funds from the fresh issue will be used for working capital, general corporate purposes, and public issue expenses.

The public offer was entirely a fresh issue of 51.84 lakh shares, with the price band set at Rs 70 per share.

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