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Shringar House of Mangalsutra (SHRINGARMS) Listing Update: Shringar House of Mangalsutra entered the secondary market on Wednesday, beginning their journey in the listed space at a premium of around 14 per cent over the issue price. The stock -- traded with the symbol SHRINGARMS on BSE and NSE -- opened at Rs 187.7 and 188.5 apiece on BSE and NSE, premiums of 13.8 per cent and 14.2 per cent respectively. 

The listing follows the company's successful IPO that witnessed strong investor response with an overall subscription of more than 60 times the equity on offer. 

Mumbai-based Shringar House of Mangalsutra is a jewellery manufacturer specialising in 'mangalsutras'.

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Zee Business Managing Editor Anil Singhvi had expected the stock to debut in a Rs 185-190 range.

He suggests investors hold on to their positions with a stop loss at Rs 175. Shringar House of Mangalsutra’s IPO, which opened on September 10 and closed on 12, comprised fresh issuance worth Rs 401 crore. Under the IPO, shares were available for bidding in a price band of Rs 155-165.

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What is an IPO listing?

An IPO listing is the process where shares of a company that has just completed its IPO are officially admitted to trade on a stock exchange. 

Once listed, investors who were allotted shares  as well as new investors can deal in these securities just like any listed entity on Dalal Street. 

How is the listing price of an IPO decided?

The listing price is influenced by factors such as IPO price band, overall IPO demand, market conditions and investor sentiment.

However, there is no guarantee that an oversubscribed IPO will make a strong debut, and vice versa. At the end of the day, markets are unpredictable, and so are IPO listings.

Who decides the listing price?

The listing price of a company’s stock on exchanges is determined mainly by market forces on the day of listing. 

There’s no fixed issue price in a listing.

Instead, existing shareholders sell and trade subsequently directly in the open market.

Bourses use a pre-opening auction to discover the listing price based on buy and sell orders, just like normal listed scrips.

What does IPO subscription mean?

IPO subscription refers to the number of times the shares offered in the IPO were bid for by investors. 

For instance, a 60x subscription means demand was 60 times higher than the shares on offer. 

Can allottees sell IPO shares on listing day?

Investors allotted shares in an IPO can sell them as soon as the stock starts trading on the listing day. 

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