homemarket Newsstocks NewseMudhra makes decent market debut as shares list at 6% premium over issue price

eMudhra makes decent market debut as shares list at 6% premium over issue price

By Sandeep Singh  Jun 1, 2022 10:18:22 AM IST (Updated)

eMudhra IPO listing: The stock changed hands in the grey market Rs 5 below the IPO price, say dealers. Here's what to expect from the listing.

Shares of eMudhra — a digital trust services and enterprise solutions provider — debuted in the secondary market at a premium over its issue price on Wednesday. The stock  opened at Rs 271 apiece on BSE, a premium of Rs 15 or 5.9 percent over the upper end of its IPO price range.

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On NSE, eMudhra shares began their journey at Rs 270, a premium of Rs 14 or 5.5 percent over the issue price of Rs 256.
The listing was in contrast to the trend seen in the grey market — an unofficial market for unlisted securities — over the past few days.
Dealers said eMudhra shares changed hands at a discount of Rs 5 to the issue price on Wednesday ahead of the listing on BSE and NSE.
DateGrey market premium (in rupees)
26 May+/- 10
26 May+/- 10
26 May+/- 10
26 May+/- 10
25-May+/- 10
24-May+/- 10
23-May+/- 10
21-May+/- 10
20-May+/- 10
(Source : IPO Watch)
 
"eMudhra received a soft response from investors owing to its rich pricing and jittery primary market sentiments. The company has a significant market share but intensifying competition cannot be ruled out," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com. 
He had expected the stock to list around Rs 250-260 apiece.
The company's IPO to raise up to Rs 413 crore through a combination of fresh issuance and an offer for sale (OFS) was open from May 20 to May 24, and saw an overall subscription of 104 percent the shares on offer.
CategorySubscriptionPortion reserved
Qualified institutional buyer106%50%
Retail investor84%35%
Non-institutional investor148%15%
Potential investors could bid for eMudhra shares in a price band of Rs 243-256 in multiples of 58 under the IPO. At the upper end of the price band, one lot is worth Rs 14,848.
The listing of eMudhra shares comes amid wild swings on Dalal Street, with the Nifty50 benchmark having retreated almost 11 percent from its peaks in October last year. Sustained foreign fund outflows and concerns about receding global growth have dampened the overall sentiment in the market.
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