Vivid Electromech Shares Surge After IPO Listing on NSE SME

Q: What was the IPO subscription rate for Vivid Electromech?

The IPO was subscribed **1.06 times** overall, with the retail portion undersubscribed at **36%**.

Original: Vivid Electromech shares list at 2% premium on NSE SME, extend rise to hit 5% upper price band

Mint•Apr 7, 20262 min

In a Nutshell

Vivid Electromech's shares debuted on the NSE SME at a 2% premium, opening at ₹565 against an IPO price of ₹555. The stock quickly rose to hit the 5% upper price band of ₹593.25 shortly after listing, despite a lukewarm investor response during the IPO phase.

Key Points

01Vivid Electromech shares opened at ₹565, a 2% premium over the IPO price.
02The stock hit the 5% upper price band of ₹593.25 shortly after listing.
03The IPO was subscribed only 1.06 times, with the retail portion undersubscribed at 36%.
04The company raised ₹37.12 crore from anchor investors before the IPO.
05Proceeds from the IPO will fund capital expenditure and working capital needs.

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Full Summary

Vivid Electromech, a manufacturer of Low-Voltage (LV) and Medium-Voltage (MV) electrical panels, listed its shares on the NSE SME on April 7 at a 2% premium, opening at ₹565 compared to the IPO price of ₹555. Following its debut, the stock quickly surged, reaching the 5% upper price band of ₹593.25. This performance exceeded expectations, especially considering the grey market premium indicated a potential listing at par with the offer price. The IPO was only 1.06 times subscribed overall, with the retail segment notably undersubscribed at 36%. The qualified institutional buyer (QIB) segment was the most active, being booked 1.95 times. Vivid Electromech raised ₹37.12 crore from anchor investors prior to the share sale, which aimed to raise a total of ₹130.54 crore through a combination of fresh issues and an offer for sale. The funds will be allocated for setting up a new manufacturing unit, repaying borrowings, and meeting working capital needs.

Key Figures

₹130.54 Cr

Total IPO value

₹37.12 Cr

Funds raised from anchor investors

1.06 times

Overall IPO subscription rate

36%

Retail portion subscription rate

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Why It Matters

The successful listing and price increase of Vivid Electromech could boost investor confidence in the SME sector, potentially leading to increased funding for local businesses.

Who is affected

Investors in Vivid Electromech and other SMEs

What to know

Investors should monitor the stock's performance and consider opportunities in the SME market.

FAQ

The IPO was subscribed 1.06 times overall, with the retail portion undersubscribed at 36%.

The proceeds will fund capital expenditures, repay borrowings, and meet working capital needs.

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