Kaytex Fabrics' shares list 20 pc lower at Rs 144

Mumbai, Aug 5 (IANS) Kaytex Fabrics made a weak debut on the stock market on Tuesday, with its shares listing at Rs 144 on the NSE SME platform.

This was 20 per cent lower than the IPO’s upper price band of Rs 180. After listing, the stock continued to trade weak, moving between a high of Rs 151.20 and a low of Rs 136.80 during the day.

The poor listing came as a surprise to many investors, especially since the Kaytex Fabrics IPO had received a strong response.

Overall, the issue was subscribed 42.70 times, with retail investors bidding 47.85 times the allotted quota, qualified institutional buyers (QIBs) subscribing 31.16 times, and non-institutional investors (NIIs) subscribing 43.19 times.

Market expectations had been higher ahead of the debut. The IPO’s grey market premium (GMP) was at +15 -- suggesting that shares could list around Rs 195 -- about 8.33 per cent higher than the upper price band.

However, the actual listing price was much lower, disappointing investors. Kaytex Fabrics received approval from SEBI to launch an IPO worth Rs 69.81 crore.

This included a fresh issue of shares worth Rs 57.59 crore and an offer for sale of up to 6,79,200 equity shares, each with a face value of Rs 10.

The company fixed the price band for the IPO at Rs 171 to Rs 180 per share, according to its public issue paper.

In this IPO, retail investors could apply for a minimum of 1,600 shares (2 lots) and a maximum of the same number allowed in the retail category.

For small high net-worth individuals (S-HNIs), the minimum application size was 2,400 shares (3 lots), while the maximum was 4,800 shares (6 lots).

Founded in January 1996, Kaytex Fabrics is a fast-fashion textile manufacturer that combines technology, innovative designs, and skilled craftsmanship.

The company produces fabrics from various fibres such as polyester, viscose, and cotton.

It sells women’s ready-to-stitch clothing, premium fabrics, and stylish designs to bulk buyers and retailers.

Its product range includes unbranded fabrics, ready-to-stitch suits, and accessories like stoles, scarves, and shawls.

--IANS

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