V R Infraspace IPO: Lists 6% Above Issue Price

V R Infraspace IPO Makes Tepid Debut 

V R Infraspace IPO had a tepid start on the NSE SME today. Its share price opened at ₹90 on the NSE SME platform marking a modest increase of 5.88% from its issue price of ₹85.Despite a strong response to its Initial Public Offering. Before the listing In the grey market, V R Infraspace's shares were trading at a premium of ₹6 indicating stock might list ₹6 premium over the issue price of ₹85. The stock debuted at ₹90, reflecting a premium of 5.88% over its IPO price. Presently, it has declined by 4.44% from its listing price. Throughout the morning trading session it reached a peak of ₹91 and a low of ₹85.50. Approximately 13.89 lakh shares were traded.

V R Infraspace IPO Subscription and IPO Details

In the V R Infraspace IPO, retail investors showed strong interest subscribing to their portion nearly 91 times the offered shares with an initial subscription of over 8 times on the first day alone. Meanwhile, the portion reserved for HNIs and NIIs saw a total subscription of about 85 times with an initial subscription of around 1 time on the first day. Both these segments reached full subscription on the opening day resulting in the overall IPO reaching about 4.6 times subscription by the end of the first day. HNI/NII portion recorded a surge in subscriptions on the final day with the subscription ratio jumping from about 4.5 times to an impressive 85 times, contributing to the overall subscription ratio closing at around 93.41 times.

Read V R Infraspace IPO Closing subscription 93.41 times

V R Infraspace's stock, with a face value of ₹10 per share, is issuing its IPO at a fixed price of ₹85 per share. This IPO consists only of a fresh issue, totaling 24,00,000 shares, raising ₹20.40 crore. There's no offer for sale portion, so the IPO size is solely based on this fresh issue. Before the listing the promoters own 100% of the company, but post IPO, their stake will decrease to 72.97%. The funds raised will be used to invest in its subsidiary, Narayanan Enterprises Ltd, and for working capital expenses and general corporate purposes.

V R Infraspace IPO Performance: Brief Overview

Between 31 March 2022 and March 31, 2023, V R Infraspace IPO demonstrated remarkable growth with its profit after tax surging by 229.16% and revenue rising by 35.16%. Despite this, the company's share price opened at ₹90 on NSE SME, a modest 5.88% premium over the issue price. According to the red herring prospectus V R Infraspace's listed peers include companies like Samor Reality (with a P/E of 135.23) and Laxmi Goldorna House Ltd (with a P/E of 343.68), both showing higher price to earnings (P/E) ratios.

Also read more about V R Infraspace IPO

To Summarize

Despite a tepid debut on NSE SME, V R Infraspace's strong IPO subscription highlights investor confidence in its growth prospects. The company's performance metrics coupled with market dynamics will be closely monitored by investors in the coming days.