Pelatro IPO Lists at ₹275, Surges 37.50% Over Issue Price

Pelatro Limited, a provider of customer engagement platforms for telecommunications companies, made a strong debut on the Indian stock market on Tuesday, 24th September 2024, with its shares listing at a significant premium to the issue price. The company's initial public offering (IPO) had generated robust demand from investors during its subscription period, setting the stage for an impressive market debut.

Listing Details

• Listing Price: Pelatro shares were listed at ₹275 per share on the NSE SME platform, marking a strong start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. Pelatro had set its IPO price band from ₹190 to ₹200 per share, with the final issue price being fixed at the upper end of ₹200.
• Percentage Change: The listing price of ₹275 on the NSE SME translates to a premium of 37.50% over the issue price of ₹200.

First-Day Trading Performance

• Opening Price: The stock opened at ₹275
• Market Capitalisation: As of 9:58 AM, market capitalisation stood at ₹286.18 crore
• Trading Volume: The indicative equilibrium quantity was 6,93,000 shares at the time of listing.

Market Sentiment and Analysis

• Market Reaction: The market reacted positively to Pelatro's listing. The strong listing premium indicates robust demand and investor confidence in the company's prospects.
• Subscription Rate: The IPO was oversubscribed by 21.94 times, with non-institutional investors leading at 55.31 times subscription.

Growth Drivers and Challenges

Expected drivers of future performance:

• Comprehensive customer engagement platform for telecom companies
• Presence in 38 telecom networks across 30 countries
• Proprietary technology and patented solutions

Potential Challenges:

• Competitive landscape in the customer engagement software sector
• Dependence on telecom industry trends
• Recent financial performance showing losses

Utilisation of IPO Proceeds

Pelatro plans to use the funds for:

• Funding capital expenditure for IT equipment and hardware
• Investment in subsidiary
• Meeting working capital needs
• General corporate purposes

Financial Performance

The company's recent financial performance shows:

• Revenue of ₹5,536.54 lakhs for the year ended March 31, 2024
• Net Loss of ₹195.62 lakhs for the same period

As Pelatro begins its journey as a listed entity, market participants will closely monitor its ability to leverage its global presence and proprietary technology to drive future growth and achieve profitability. The strong listing suggests positive investor sentiment towards the company's long-term prospects in the customer engagement solutions sector for the telecom industry.