Aastha Spintex share price makes weak debut, lists at 4% discount to the IPO price

Aastha Spintex share price made a muted debut in the Indian stock market on Monday, 6 July. The shares of Aastha Spintex listed at a 4.41% discount to the IPO price of ₹136 per share.

Aastha Spintex share price opened at ₹130 per share on both NSE and BSE. This means that the IPO allottees made a loss of 4.41% on the Aastha Spintex IPO listing.

The listing of Aastha Spintex IPO came below the market expectations. The GMP of Aastha Spintex IPO was ₹4.75 per share, signaling that the estimated listing price of the stock would be ₹140.75 apiece, which is at a premium of 3.49% to the issue price of ₹136 per share.

Aastha Spintex IPO

Aastha Spintex IPO was open for subscription from June 29 to July 1. The share allotment was finalised on July 2.

The company raised ₹170 crore through the public issue, which comprised a fresh issue of 1.25 crore equity shares. The price band for the IPO was fixed at ₹125–136 per share.

The issue received an overall subscription of 3.30 times. The retail investor portion was subscribed 1.27 times, while the Non-Institutional Investor (NII) category saw a subscription of 6.03 times. The Qualified Institutional Buyers (QIB) segment was subscribed 1.87 times.

The company plans to utilise the IPO proceeds for the partial acquisition of Falcon Yarns Pvt Ltd, to meet the acquired company's working capital needs through inter-corporate deposits, and for general corporate purposes.

BOI Merchant Bankers Ltd. acted as the book-running lead manager for the issue, while Bigshare Services Pvt. Ltd. served as the registrar.

Aastha Spintex is engaged in the manufacturing and trading of carded, combed and compact-combed cotton yarns, cotton bales, and allied by-products. It operates an integrated spinning and ginning facility located in Halvad, in Gujarat's Morbi district.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.