3C IT Solutions IPO Shocks Market with Huge -17.29% Discount!

Weak Listing for 3C IT Solutions & Telecoms IPO in BSE-SME segment

3C IT Solutions & Telecoms IPO had a weak listing on 12th June 2024, listing at ₹43.01 per share, a discount of -17.29% on the issue price of ₹52 per share in the IPO. Here is the pre-open price discovery for the 3C IT Solutions IPO on the BSE.

PRE-OPEN ORDER COLLECTION SUMMARY

Data Source: BSE

3C IT Solutions IPO with the IPO price fixed at ₹52 per share (comprising of face value of ₹5 per share and a premium of ₹47 per share). The IPO of 3C IT Solutions & Telecoms (India) showed modest to strong subscription response at over 20X and there was no anchor allocation in the IPO as there was no dedicated QIB quota. On 12th June 2024, the stock of 3C IT Solutions & Telecoms (India) listed at ₹43.01 per share, a discount of -17.29% on the IPO price of ₹52.00 per share. For the day,  being in the 5% circuit filter category, the upper circuit price has been set at ₹45.16 and the lower circuit price has been set at ₹40.86. 

As of 10.05 am, the volumes were 2.12 lakh shares while the turnover (value) was at ₹91.40 lakhs. The opening market cap of the stock stands at ₹26.49 crore with free float market cap of ₹9.80 crore. The stock will be traded in the MT segment of the BSE, which is on the T+1 settlement system. At 10.05 am, the stock is trading at ₹44.01, which is above the listing price of ₹43.01 per share and the stock is trading higher after a rather weak listing. The stock of 3C IT Solutions & Telecoms (India) has a face value if ₹5 per share and the market lot comprises of 2,000 shares. The stock trades under the BSE Code (544190) and the ISIN code for demat credits will be (INE0R7D01018).

About 3C IT Solutions & Telecoms IPO

3C IT Solutions & Telecoms (India) IPO has a face value of ₹5 per share and it is a fixed price issue. The price for the fixed price issue is set at ₹52 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of 3C IT Solutions & Telecoms (India) has a fresh issue component and an offer for sale (OFS) component in the . While the fresh issue portion is EPS dilutive and equity dilutive, OFS is just a transfer of ownership and  hence not EPS or equity dilutive. As part of the fresh issue portion of the IPO, 3C IT Solutions & Telecoms (India) will issue a total of 17,00,000 shares (17.00 lakh shares), which at the fixed IPO price of ₹52 per share aggregates to fresh fund raising of ₹8.84 crore. As part of the offer for sale portion of the IPO, 3C IT Solutions & Telecoms (India) will offer a total of 5,00,000 shares (5.00 lakh shares), which at the fixed IPO price of ₹52 per share aggregates to an offer for sale (OFS) size of ₹2.60 crore. Gold Circle Venture Partners LLP, an early investor shareholder in the company, will offer the entire 5 lakh shares in the offer for sale (OFS).

Read more about 3C IT Solutions IPO

As a result, the overall IPO size will comprise of the issue and offer of 22,00,000 shares (22.00 lakh shares) which at the fixed IPO price of ₹52 per share will aggregate to overall IPO size of ₹11.44 crore. Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 1,12,000 shares. Shreni Shares Ltd will be the market maker to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The company has been promoted by Ranjit Kulladhaja Mayengbam and Gangarani Devi Mayengbam. The promoter holding in the company currently stands at 72.00%. However, post the fresh issue of shares in the IPO, the promoter equity holding share will get diluted to 51.66%. The fresh issue funds will be used by the company towards funding the working capital gaps in the regular operations of the company and repayment of some portion of the debt. Kreo Capital Private Ltd will be the lead manager to the issue, and Skyline Financial Services Private Ltd will be the registrar to the issue. The market maker for the issue is Shreni Shares Ltd. The IPO of 3C IT Solutions & Telecoms (India) will be listed on the SME IPO segment of the BSE.