Popular Foundations Shares Underperform At Market Debut

ENA MSME 2024-09-24 16:10:33 New Delhi, Sep 24 (KNN) Popular Foundations experienced a muted debut on the BSE SME platform, with shares opening at Rs 35.15, a 5 per cent decline from the initial public offering (IPO) price of Rs 37 per share. The stock hit the lower circuit upon listing, performing below expectations set by grey market predictions, which had anticipated trading at par with the IPO price. The company's Rs 19.87-crore public offer, consisting entirely of a fresh issue of 53.7 lakh shares, received a lukewarm response from investors. Despite the recent enthusiasm surrounding SME IPOs, Popular Foundations' issue was oversubscribed by just over 9 times. Retail investors showed the most interest, subscribing 15 times their allotted portion, while non-institutional investors subscribed 3.5 times their quota. Notably, qualified institutional buyers (QIBs) abstained from participation. Established in 1998, Popular Foundations has built a reputation for providing comprehensive engineering and construction solutions. The company primarily focuses on non-residential, non-government projects in and around Chennai, with successful ventures in other major cities including Pondicherry, Bangalore, and Trichy. Their portfolio encompasses various sectors, such as factories, educational institutions, and commercial spaces. The net proceeds from the IPO are earmarked for multiple purposes, including the repayment of outstanding borrowings, funding working capital requirements, and general corporate expenses. This underwhelming market debut raises questions about investor confidence in the company's growth prospects and the overall appetite for SME listings in the current economic climate. (KNN Bureau) 39389 https://knnindia.co.in/news/newsdetails/msme/popular-foundations-shares-underperform-at-market-debut 2024-09-24 16:10:33 knnindia.co.in Popular Foundations Shares Underperform At Market Debut