Effwa Infra and Research made a notable entry into the stock market on Friday, debuting with a 90% premium at ₹155.80 per share on the NSE SME platform, significantly higher than its initial public offering (IPO) price of ₹82 per share. This strong start was anticipated by market experts and reflected in the grey market premium (GMP), which stood at ₹143 per share, a 174.39% increase over the issue price.

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IPO Details:

The IPO for Effwa Infra and Research opened on Friday, July 5, and closed on Tuesday, July 9. The company set the price band for the IPO at ₹78 to ₹82 per share, and it managed to raise ₹51.27 crore at the upper end of the price band. This included a fresh issue of 53.17 lakh equity shares worth ₹43.60 crore and an offer-for-sale (OFS) component of 9.36 lakh shares valued at ₹7.68 crore.

Effwa Infra and Research's IPO garnered an overwhelming response from investors across various segments. The IPO was subscribed 313.65 times, receiving bids for 131.07 crore equity shares against the 41.79 lakh shares on offer. The retail category was subscribed 323.81 times, the Qualified Institutional Buyers (QIB) category 166.56 times, and the Non-Institutional Investors (NII) category an impressive 477.27 times.

Market Debut:

Effwa Infra and Research shares began trading at ₹155.80 per share, reflecting a 90% premium over the IPO price. This impressive listing was in line with the street estimates, driven by the robust investor demand and positive market sentiment. The NSE set a price control cap of 90% on the issue price of SME IPOs during the pre-opening session, resulting in the listing price reflecting this cap.

Shreni Shares Limited acted as the book running lead manager for the IPO, while Bigshare Services Pvt Ltd served as the IPO registrar. The successful listing of Effwa Infra and Research shares underscores the strong investor confidence and the potential growth prospects of the company in the infrastructure and research sectors.

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Future Prospects:

The successful listing on the NSE SME platform opens up new avenues for Effwa Infra and Research, providing the company with increased visibility and access to capital markets. The funds raised from the IPO will be utilized to fuel the company’s growth initiatives, including expansion projects, technological advancements, and strengthening its market presence.

The significant oversubscription across all investor categories highlights the market's positive outlook on the company's future performance and growth potential. Investors and market analysts will closely monitor Effwa Infra and Research's post-listing performance to gauge its trajectory in the competitive infrastructure and research sectors.

Conclusion:

Effwa Infra and Research's impressive stock market debut with a 90% premium over its IPO price marks a significant milestone for the company. The strong investor response and substantial oversubscription indicate robust market confidence in the company's growth prospects. As Effwa Infra and Research embarks on its journey as a publicly listed entity, it is well-positioned to leverage the opportunities in the infrastructure and research sectors, driving value for its shareholders and stakeholders.

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