V R Infraspace made a modest debut on the NSE SME today, opening at ₹90, a 5.88% increase from its issue price of ₹85. The company’s initial public offering (IPO) was open for subscription from March 4 to March 6, with a price band of ₹85 per share and a lot size of 1,600 shares.
V R Infraspace is a construction and real estate development company based in Vadodara, Gujarat, specializing in residential and commercial projects.
As per the red herring prospectus, the company’s listed peers include Samor Reality (P/E of 135.23) and Laxmi Goldorna House Ltd (P/E of 343.68). Between March 31, 2022, and March 31, 2023, V R Infraspace reported a significant increase in profit after tax (PAT) by 229.16%, and its revenue grew by 35.16%.
The ₹20.40 crore V R Infraspace IPO consists of a fresh issue of 2,400,000 equity shares with a face value of ₹10 each. The funds raised will be utilized for working capital requirements, subsidiary funding (M/s Narnarayan Enterprise), issue expenses, and general corporate purposes.
The IPO’s registrar is Link Intime India Private Ltd, and the book running lead manager is Beeline Capital Advisors Pvt Ltd. Spread X Securities serves as the market maker for the IPO.
The Grey Market Premium (GMP) for V R Infraspace is currently +6, indicating that the shares are trading at a premium of ₹6 in the grey market, according to www.investorgain.com. Considering the upper end of the IPO price band and the current GMP, the estimated listing price for V R Infraspace is ₹91 per share, reflecting a 7.06% increase over the IPO price of ₹85.
The ‘Grey Market Premium’ signifies investors’ willingness to pay more than the issue price, indicating market sentiment and demand for the company’s shares.
