United Cotfab Shares Open Strong On BSE SME Platform

New Delhi, Jun 24 (KNN) United Cotfab, a specialist in open-end yarn manufacturing, made its debut on the BSE SME platform on June 24, 2024. The company's shares opened at Rs 75, marking a 7.1 per cent premium over the issue price of Rs 70 per share.

The initial public offering (IPO), which raised Rs 36.29 crore, garnered significant investor interest, with the issue being oversubscribed 107 times.

Non-institutional investors led the demand, subscribing 114 times their allotted quota, while retail investors' portion was oversubscribed 77.22 times.

Despite the strong opening, the listing gains fell short of grey market expectations, where shares were trading at Rs 83 prior to the official debut. The grey market, an unofficial trading platform, often serves as an indicator of potential listing performance.

United Coftab, established in 2015, focuses on producing high-quality open-end yarn for the textile industry.

The company's client base includes textile manufacturers, garment exporters, and distributors, with a product range encompassing open-end and cotton yarn.

The IPO comprised a fresh issue of 51.84 lakh shares, priced at Rs 70 per share. Proceeds from the offering are earmarked for working capital requirements, general corporate purposes, and public issue expenses.

This listing represents another addition to the BSE SME platform, which aims to provide smaller companies with access to public markets and growth capital.

(KNN Bureau)