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Pratham EPC Projects Limited is a prominent service provider for oil and gas utilities in India. On March 18, 2024, it made a stellar debut on the NSE SME platform. The company's shares opened at a staggering 51% premium over the issue price of Rs 75, commencing trading at Rs 113.30 apiece.
The impressive listing has surpassed expectations from the grey market, an unofficial platform for trading in IPO shares before listing. The grey market had pegged the potential listing price at Rs 102, attributing a premium of Rs 27 over the issue price.
Pratham EPC Projects' IPO, which opened for subscription between March 11 and March 13, garnered significant investor interest. The issue was subscribed a whopping 178.54 times, with the retail portion oversubscribed 179.48 times and non-institutional investors booking their share at 320.53 times.
The company raised approximately Rs 36 crore through the fresh issue of 48 lakh equity shares, priced in the range of Rs 71 to Rs 75 per share. The IPO comprised solely a fresh issue, with no offer-for-sale component.
Established in 2014, Pratham EPC Projects specializes in providing services to the oil and gas sector, with a particular focus on gas pipeline projects. The company undertakes critical tasks such as welding, testing and commissioning, leveraging its expertise in project management encompassing engineering, procurement, construction and commissioning activities.
The proceeds from the IPO will be deployed towards strategic growth initiatives, including the acquisition of machinery, meeting working capital requirements and supporting general corporate purposes.
Beeline Capital Advisors Pvt Ltd served as the book-running lead manager for Pratham EPC Projects' IPO, while Link Intime India Private Ltd acted as the registrar for the issue. Spread X Securities played the crucial role of market maker, ensuring adequate liquidity and supporting the stock's trading on the NSE SME platform.
The successful listing of Pratham EPC Projects underscores the growing prominence of the SME segment in providing growth opportunities for emerging companies across diverse sectors. As the company embarks on its public journey, investors keep an eye closely monitor its strategic execution and ability to capitalize on the burgeoning demand for energy infrastructure in India.
Pratham EPC Projects Limited's stellar debut on the NSE SME platform, with shares opening at a remarkable 51% premium, signifies robust investor confidence in the company's potential. The overwhelming response to its IPO, oversubscribed by a staggering 178.54 times, underscores the strong demand for its specialized services in the oil and gas sector.
With proceeds aimed at strategic growth initiatives like acquiring machinery and bolstering working capital, Pratham EPC Projects is poised for expansion. Investors keen on tapping into India's energy infrastructure growth story may find potential in this emerging player. However, vigilance regarding the company's strategic execution remains prudent as it navigates the public markets.
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