Aastha Spintex shares made a muted stock market debut; shares list at 4% discount

Shares of Aastha Spintex made a muted stock market debut on Monday, July 06 as the cotton yarn and cotton bales maker was listed at Rs 130 apiece, a discount of 4.41 per cent over the issue price of Rs 136 per share on both BSE and NSE. Based on the listing price, investors made al loss of Rs 660 per lot allotted to them.

Listing of Aastha Spintex has been below the expectations. Last heard, Aastha Spintex was commanding a grey market premium (GMP) of discount of Rs 4-5 apeice, suggesting a positive listing for the investors. However, its GMP stood around Rs 6-7 during the bidding period.

The IPO of Aastha Spintex was open for bidding between June 29 and July 01. It had offered its shares in the price band of Rs 125-136 per share with a lot size of 110 shares. The company raised a total of Rs 170 crore from its IPO, which was entirely a fresh share sale of 1,25,00,000 equity shares.

The issue was subscribed 4.64 times, attracting bids worth around Rs 860 crore via nearly 1.12 lakh applications. The quota for non-institutional investors (NIIs) was subscribed a 7.62 times, while the allocation for retail investors was subscribed 2.33 times. The portion for qualified institutional bidders (QIBs) was booked 3.30 times.

Incorporated in 2013, Aastha Spintex is engaged in the business of manufacturing and trading of carded, combed and compact combed cotton yarns and cotton bales. It has a semi-automated and integrated spinning and ginning manufacturing facility situated at Halvad, Morbi, Gujarat.

Brokerage firms were mostly positive on the issue in long-term only. BOI Merchant Bankers and PNB Investment Services were the book running lead managers for the Aastha Spintex and Bigshare Services was appointed as the registrar of the issue.