In the latest financial news, Vrundavan Plantation and KK Shah Hospitals made their debut on the BSE SME platform on Monday. Both companies had successful initial public offerings (IPOs), with proceeds intended to boost working capital and fund general corporate purposes.
Vrundavan Plantation, a company operating in the nursery business with services including landscape development, horticulture, plantation, landscape maintenance, and irrigation works, saw its stock start trading at Rs 107. This was a Re 1 discount from its IPO price, which subsequently fell by 5.8 percent to Rs 101.65 shortly after listing. The company, promoted by Upendra Tiwari who held an 83.76 percent stake before the IPO, raised Rs 15.29 crore from its IPO. The offering was oversubscribed 18.57 times with the proceeds being used towards working capital, unsecured loans repayment, and general corporate purposes.
On the other hand, KK Shah Hospitals opened at a premium of 24.44 percent over the IPO price at Rs 56 against an issue price of Rs 45. The hospital is situated in Ratlam, Madhya Pradesh and boasts over 26 beds along with diagnostic devices like CT scans, DEXA scans, BMD, sonography, and X-ray machines. Promoted by Amit Shah and Kirti Kumar Shah who held a pre-IPO stake of 49.58 percent, the hospital raised Rs 8.78 crore through its public issue which was subscribed 13.5 times. The funds raised are expected to be used for acquiring more medical equipment as well as for general corporate purposes.
In related news, other companies such as Transteel Seating Tech and Cello World also recently listed at a premium on the BSE SME platform.
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