Cedaar Textile shares off to a weak start, list at 15% discount to IPO price

Cedaar Textile IPO listing: Yarn manufacturer Cedaar Textile shares witnessed a weak stock market debut on Monday, July 7, as the stock got listed at a discount of 15% to the issue price despite decent demand for the initial public offering (IPO). Cedaar Textile share price opened at ₹119 on the NSE SME, 15% below its IPO price of ₹140.

After listing, Cedaar Textile share price extended losses to hit the day's low of 113.05 on the NSE SME, down 19.25% from the IPO price.

Cedaar Textile IPO listing was lower than market expectations as the grey market premium (GMP) signalled a 7% listing pop. Cedaar Textile IPO GMP was ₹10, which means that Cedaar Textile share price was trading at ₹10 higher than its issue price in the grey market, a premium of 7%.

Cedaar Textile IPO also witnessed a decent demand during its bidding period, closing with 12.26 times subscription. The retail portion was booked 9.73 times, the non-institutional investors' portion was booked 5.04 times, and the qualified institutional buyers' portion received 37.88 times bids.

More to come…

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