Shares of Dhara Rail Projects made a spectacular entry into the Indian stock market on December 31, delivering robust listing gains to its investors. The stock debuted on the NSE SME platform at a significant premium, marking a successful conclusion to its initial public offering (IPO).
A Stellar Market Debut
The Dhara Rail Projects share price was listed at ₹150 on the National Stock Exchange's SME platform. This represented a strong premium of ₹24, or 19%, over the IPO's upper price band of ₹126 per share. The positive momentum continued post-listing, with the stock climbing an additional 3% to touch an intraday high of ₹155. This performance surpassed the expectations set by the grey market, where the premium (GMP) was indicating a 13% listing pop at ₹16.5 just before the debut.
Overwhelming Investor Response and IPO Details
The public offering, which was open for subscription from December 23 to December 26, witnessed an overwhelming response from all categories of investors. The IPO was subscribed a massive 111.90 times overall. The breakdown reveals intense demand: the Non-Institutional Investor (NII) portion was booked 199.41 times, the Retail segment saw 97.61 times subscription, and Qualified Institutional Buyers (QIBs) bid 71.30 times.
The ₹50-crore IPO consisted entirely of a fresh issue of shares. The company plans to utilise the net proceeds for several purposes, including the repayment or prepayment of borrowings, meeting working capital requirements, and general corporate objectives. The price band for the offer was set at ₹120 to ₹126 per share.
Allotment and Company Background
The basis of allotment for the Dhara Rail Projects IPO was finalised on December 29. Successful allottees found the shares credited to their demat accounts on December 30. Refunds for unsuccessful applicants were also processed on the same day. For retail investors, the minimum application size was two lots, translating to an initial investment of ₹2,52,000, as one lot comprised 1,000 shares.
Incorporated in 2010, Dhara Rail Projects is a certified company specializing in services for railway rolling stock systems. Its service portfolio includes annual maintenance contracts (AMCs) and comprehensive repair services, positioning it within the vital railway infrastructure sector of India.
Disclaimer: This news article is for informational and educational purposes only. Market investments carry risks, and readers are strongly advised to consult with SEBI-certified financial advisors before making any investment decisions, as conditions are subject to rapid change.
