Shares of Astron Paper & Board Mill settled at Rs 119.70 on BSE, a premium of 139.4% over the initial public offer price of Rs 50.
Meanwhile, the S&P BSE Sensex rose 208.80 points or 0.62% to settle at 34,056.83.
The stock debuted at Rs 114, a premium of 128% over the initial public offer (IPO) price. The stock was locked at a high of Rs 119.70 in intraday trade. The stock had hit low of Rs 113.10 in intraday trade. On BSE, 5.81 lakh shares were traded on the counter.
Astron Paper & Board Mill had priced the IPO at the top end of the Rs 45 to Rs 50 price band. The IPO received bids for 340.6 crore shares. The IPO was subscribed 243.29 times. The issue opened on 15 December 2017 and closed on 20 December 2017.
Astron Paper & Board Mill is an Ahmedabad-based company manufacturing kraft paper. The company mainly caters to the packaging industry and the company's kraft paper is used by packaging industry in manufacturing corrugated boxes, liners, sacks and composite containers. Kraft paper is also used in textile industry, in manufacturing ordinary boxes, book/note book register bindings and envelope manufacturing.
The company plans to utilise the net proceeds from the IPO towards setting up additional facility for manufacturing of kraft paper with lower gram square meter (gsm), ranging from 80 to 180 gsm, for Rs 23.02 crore; to meet the working capital requirement of Rs 23.90 crore; and to repay unsecured loans availed by the company of Rs 8.10 crore; apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders.
Astron Paper & Board Mill reported net profit of Rs 9.46 crore on net sales of Rs 110.95 crore in six-months ended September 2017.