Deem Roll Tech stock lists at 55% premium to IPO price on NSE SME

Deem Roll Tech made an impressive market debut, listing at a 55 percent premium to the IPO price on February 27. The stock started trading at Rs 200 on the NSE SME platform against the issue price of Rs 129 a share.

Ahead of the listing, the stock was commanding a 63 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium to get an idea of the listing price.

The listing was on the back of strong subscription. The issue, which was open for subscription from February 20-22, was subscribed 256 times, with the retail portion getting booked 180 times.

Deem Roll Tech raised Rs 29.26 crore through a fresh issue of 22.68 lakh shares.

The company plans to use the fresh issue proceeds to fund the expansion of its manufacturing facility at Mehsana, Gujarat and meet its working capital requirements. The remaining funds will be set aside for general corporate purposes.

Deem Roll Tech manufactures steel and alloy rolls that are exported to more than 10 countries, including the US, Germany, West Asia and Bangladesh. As of September 30, 2023, the company served over 340 domestic customers and 30 export customers.

The company has three manufacturing units in Mehsana, Dadpur in West Bengal and the third unit is in Gujarat's Ahmedabad.