LGT Business Connextions IPO listing: Shares list at 20% discount, fall further to hit lower circuit

LGT Business Connextions IPO listing: Shares of LGT Business Connextions made a weak debut on the BSE on Tuesday, August 26, listing at a 20 per cent discount at ₹85.60 against its issue price of ₹107. The stock's listing was below grey market expectations, as the grey market observers expected the stock to list at par with the issue price.

After listing at a 20 per cent discount, the stock fell further to hit its 5 per cent lower circuit of ₹81.35. Overall, the SME stock fell 24 per cent from its issue price to hit its lower circuit.

Around 11:25 AM, the stock was locked in its lower circuit. Equity benchmark Sensex was 0.62 per cent down at 81,127 at that time.

LGT Business Connextions operates as a service aggregator in the travel and tourism industry.

"We connect and aggregate supply from third-party hotels, airlines, car rentals, cruise companies and other travel services directly or through third-party aggregators wherever required and offer a wide range of services to our customers," the company's DRHP said.

The company's revenue from operations in FY25 was ₹100.43 crore, up from ₹89.36 crore in FY24 and ₹61 crore in FY23. Profit for FY25 was ₹5.22 crore, up from ₹3.63 crore in FY24 and ₹2.97 crore in FY23.

The BSE SME IPO, with a price of ₹107 per share, opened for subscription on Tuesday, August 19 and closed on Thursday, August 21.

The issue was a combination of fresh issue of 23,62,800 shares for ₹25.28 crore and an offer for sale (OFS) of 2,62,800 shares for ₹2.81 crore.

The company intends to use the net proceeds from the fresh issue of shares to meet capital expenditure, working capital requirements, and for general corporate purposes.

The issue was subscribed to 1.25 times, with the retail portion booked 1.75 times, and the segment reserved for non-institutional investors (NIIs) subscribed to 0.75 times.

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stories by Nishant Kumar

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