Dhara Rail Projects shares list at 19% premium over IPO price on NSE SME

Dhara Rail Projects IPO listing: Shares of Dhara Rail Projects IPO made a stellar debut in the Indian stock market today, December 31, as they listed at a premium of 19% over their initial public offering (IPO) price of ₹126.

Dhara Rail Projects share price listed at ₹150 on the NSE SME platform, a premium of ₹24 or 19%. Soon after listing, the stock extended gains by another 3% to hit the day's peak of ₹155.

The listing was better-than-expectations as signalled by the grey market premium (GMP). Ahead of the stock market debut, Dhara Rail Projects IPO GMP today was ₹16.5 — suggesting a listing pop of 13%.

Dhara Rail Projects IPO details

The IPO of Dhara Rail Projects closed with a solid subscription of 111.90 times at the end of the bidding process. The qualified institutional buyer (QIB) segment was booked 71.30 times, the non-institutional investor (NII) quota received 199.41 times bids, and the retail portion garnered 97.61 times bids.

The ₹50-crore Dhara Rail Projects IPO was entirely a fresh issue of shares. The offer opened on December 23 and closed on December 26. Dhara Rail Projects IPO price band was fixed at ₹120-126 apiece.

The company has earmarked the repayment or prepayment of certain borrowings, meeting the working capital needs of the company, and for general corporate purposes.

Investors could apply for the IPO in lots of 1,000 shares. Retail investors needed to apply for at least two lots, requiring an initial investment of ₹2,52,000.

Dhara Rail Projects IPO allotment was fixed on December 29. The shares of the company were credited in the account of allottees on December 30, while the refund to those who could not receive allotment was also finalised on the same day.

Incorporated in 2010, Dhara Rail Projects is a certified company, providing various services like annual maintenance contracts and repair services for railway rolling stock systems.

Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.