City Crops Agro Limited IPO Lists at a Modest 2% Premium

City Crops Agro Limited IPO Lists at a Modest 2% Premium

VoM News Desk | October 10, 2023 | 11:07 AM IST | Breaking News | Follow on Google News

City Crops Agro Limited IPO Lists at a Modest 2% Premium

City Crops Agro Limited IPO Lists at a Modest 2% Premium

City Crops Agro Limited, after a rather unassuming initial public offering (IPO), made its debut on the BSE SME segment today. The listing price of City Crops Agro Limited shares stood at ₹25.50 per share, reflecting a modest 2% premium compared to the issue price of ₹25.

The IPO of City Crops Agro Limited had a price band of ₹25 per equity share with a face value of ₹10 each. The lot size for City Crops Agro IPO was fixed at 6,000 equity shares, with multiples of 6,000 equity shares thereafter. The issue price amounted to 2.5 times the face value of the equity shares. The IPO subscription window was open from September 26 to September 29.

Key Details of City Crops Agro IPO

The IPO of City Crops Agro Limited was valued at ₹15 crores and constituted an entirely fresh issue of 6,000,000 equity shares, with no offer for sale (OFS) component. The company’s promoters are Kaupilkumar Hasmukhbhai Shah and Shitalben Kaupilkumar Shah. The net proceeds from the IPO will be allocated to meet working capital requirements, fund general corporate purposes, and cover issue-related expenses.

Turnaround Corporate Advisors Pvt Ltd served as the book running lead manager for the issue, while Skyline Financial Services Pvt Ltd acted as the registrar to the issue.

City Crops Agro IPO Grey Market Premium (GMP)

As for the City Crops Agro IPO Grey Market Premium (GMP), it was reported to be ₹0, indicating that City Crops shares were trading at their issue price of ₹25 with no premium or discount in the grey market. The Grey Market Premium (GMP) is an indicator of investors’ willingness to pay a premium above the IPO issue price.

The tepid performance of the City Crops Agro Limited IPO reflects the current sentiment in the market, where investors are cautiously evaluating opportunities amid economic and geopolitical uncertainties.

VoM News Desk

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