Vivaa Tradecom Limited’s Lackluster Debut

Vivaa Tradecom Limited's Lackluster Debut

VoM News Desk | October 12, 2023 | 12:44 PM IST | Breaking News | Follow on Google News

Vivaa Tradecom Limited’s Lackluster Debut

Vivaa Tradecom Limited’s Lackluster Debut

In a rather underwhelming debut on the Bombay Stock Exchange (BSE), Vivaa Tradecom Limited shares faced a significant drop. On the BSE Small and Medium Enterprises (SME) platform, the share price of Vivaa Tradecom Limited was introduced at ₹40.80 per share. This marked a 20% decrease from the issue price of ₹51.

The public issue of Vivaa Tradecom Limited offered equity shares at a fixed price of ₹51 each, with a face value of ₹10 per share. The lot size for Vivaa Tradecom Limited was set at 2000 equity shares, and investors could subscribe in multiples of 2000 equity shares. The issue price stood at 5.1 times the face value of the equity shares. The subscription period for Vivaa Tradecom Limited began on September 27th and concluded on October 4th.

Key Facts About Vivaa Tradecom Limited

The size of Vivaa Tradecom Limited’s public issue amounted to ₹7.99 crores, exclusively comprising a fresh issue of 15.66 lakh equity shares. Each share carried a face value of ₹10. The company’s promoter is Mitesh Adani. Vivaa Tradecom Limited intends to utilize the net proceeds from the offering to fulfill its working capital needs and to support general corporate purposes. The core business of Vivaa Tradecom involves the manufacturing and trading of clothing and garments. Their product range includes Denim Fabric and ready-made garments, such as Denim and Cotton Jeans for both men and women.

Key Players in the IPO

Interactive Financial Services holds the position of the lead manager for this issue, while Bigshare Services Pvt Ltd serves as the IPO registrar. In terms of share allocation, Vivaa Tradecom Limited reserved 7.42 lakh shares (equivalent to 47.38% of the total shares) for retail investors, and another 47.38% of shares were earmarked for Non-Institutional Investors (NII) during the IPO.

Grey Market Premium and Investor Sentiment

As for the grey market premium (GMP), it was reported to be ₹0 on the day of the IPO, indicating that Vivaa Tradecom shares were trading at their issue price of ₹51 with no premium or discount. The ‘grey market premium’ essentially reflects investors’ willingness to pay above or below the official issue price.

The lackluster debut on the stock exchange suggests that the company might face challenges in the initial phase of trading. Investors will be keenly watching its performance in the coming days and weeks.

VoM News Desk

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