Merritronix's initial public offering (IPO) closed on June 3 with a subscription level of 315 times, reflecting strong investor interest. The SME IPO, which opened on June 1, raised ₹70.03 crore through a fresh issue of 0.47 crore shares. The grey market premium (GMP) stood at ₹78 on the final day, indicating a potential listing price of ₹227 per share, about 52.35% above the upper price band of ₹149, according to livemint.com.
The IPO's robust subscription was driven by strong demand from retail and institutional investors during the three-day book-building process. The issue was fully subscribed on the first day itself, with the momentum continuing through to the final day. The GMP, a key indicator of aftermarket performance, suggested significant listing gains for investors. The company set the price band between ₹140 and ₹149 per share, with the final GMP signaling confidence in the stock's market debut.
This level of oversubscription and GMP premium places Merritronix among the well-received SME IPOs in recent times, highlighting investor appetite for smaller companies with growth potential. The ₹70 crore capital raise will support Merritronix's expansion plans. Such strong market response is notable amid a cautious IPO environment, reflecting selective investor interest in promising SME listings. Comparable SME IPOs have seen varied subscription levels, making Merritronix's performance a standout.
Merritronix's shares are expected to list shortly, with the GMP suggesting a listing price around ₹227 per share, which would deliver a 52% premium over the issue price. This premium underscores the positive market sentiment and sets a benchmark for upcoming SME IPOs in the sector, as reported by livemint.com.