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Airfloa IPO Listing: There's no guarantee that an investment will perform well in the stock market. Today, we'll tell you about one such stock that has delivered strong returns to its investors. Here, we're talking about Airfloa Rail Tech shares, which delighted investors upon its listing. The IPO was listed on the BSE's SME platform at a 90 percent premium. With this, the company made a spectacular debut in the market.

IPO Receives Over 300 Times Subscription

Between September 11-15, the issue price of Rs 91.10 crore received over 300 times subscription in the primary market. Airfloa Rail Technology shares were listed on the BSE at Rs 266 per share, compared to the issue price of Rs 140. The listing at a 90% gain has been a hit with investors. The company's market cap reached Rs 637.60 crore after the listing. Airfloa Rail Tech's IPO listing in the grey market was almost in line with expectations. The company's shares were trading at a GMP of 125% in the grey market, indicating a high listing gain.

What was the grey market premium?

Airfloa Rail Tech's IPO listing in the grey market was almost in line with expectations. The GMP of the company's shares in the unregulated market was 125%, indicating the maximum listing gain. SEBI regulations require an aggregate ceiling of 90% of the issue price for initial public offerings (IPOs) of SME platforms.

What will the company do with the IPO proceeds?

Airflow Rail Tech, a Tamil Nadu-based company, has two manufacturing facilities in Chennai and Kanchipuram. Established in 1998, the company produces rolling stock, forged parts, and machinery components for the aerospace and defense sectors. It also handles turnkey railway interior projects. Of the IPO proceeds, ₹137 million will be used to purchase machinery, ₹593 million for working capital, and ₹60 million to repay outstanding debt. The remaining funds will be set aside for general corporate purposes.

Disclaimer: (The information provided here is for informational purposes only. It is important to note that investments in the market are subject to market risks. Always seek expert advice before investing as an investor. India Employment News never recommends investment here.)