Bumper debut: Apex Ecotech IPO lists at 90% premium, hits upper circuit

Apex Ecotech IPO listing: After listing, the stock gained an additional 4.97 per cent, surging 99.45 per cent from the issue price to reach the upper circuit of Rs 145.60 apiece on the NSE SME

Apex Ecotech IPO listing: Shares of wastewater treatment, recycling, and reuse solutions provider Apex Ecotech made a solid debut on the NSE SME today, continuing their upward momentum to hit the upper circuit within less than 5 minutes of listing. The company's stock listed at Rs 138.70 apiece, a 90 per cent premium over the IPO allotment price of Rs 73.

 

After listing, the stock gained an additional 4.97 per cent, surging 99.45 per cent from the issue price to reach the upper circuit of Rs 145.60 apiece on the NSE SME. During the session, nearly 0.10 million shares, valued at Rs 614.90 crore, were traded before trading was halted.

 

Notably, the capital market regulator Securities and Exchange Board of India (Sebi) has capped listing gains for SME stocks at 90 per cent of the issue price.

 

The Apex Ecotech IPO listing aligns with grey market trends, as the company’s shares were commanding a solid premium in unofficial markets. Ahead of the listing, Apex Ecotech shares were trading at a premium of Rs 45 against the issue price, resulting in a grey market premium (GMP) of 61.64 per cent, according to sources tracking grey market activities.

 

The Apex Ecotech IPO, which ended for subscription on Friday, November 29, 2024, received massive demand from investors, with the issue being oversubscribed over 450 times. The Rs 25.54-crore offering comprises an entirely fresh issue of 3,499,200 shares, priced in a band of Rs 71-73 per share with a lot size of 1,600 shares. The allotment for the IPO was finalised on Monday, December 2, 2024.

 

Apex Ecotech also announced that it had raised Rs 7.22 crore from anchor investors through bidding concluded on November 26, 2024.

 

KFin Technologies is the registrar for the issue, while Share India Capital Services is the book-running lead manager for the Apex Ecotech IPO.

 

In its Red Herring Prospectus (RHP), the company stated that it intends to use the net proceeds from the fresh issue to meet working capital requirements and for general corporate purposes. The remaining funds will be utilised to cover public issue expenses.

 

Founded in 2009, Apex Ecotech provides water and wastewater treatment solutions. Its services include Raw Water Treatment Plants, Effluent Treatment Plants, and Sewage Treatment Plants. Apex Ecotech also specialises in recycling and reuse solutions for industrial processes. The company's client base includes prominent industrial groups and corporations.