Shares of solid surface manufacturer Durlax Top Surface on Wednesday made a remarkable debut, closing with a premium of more than 55 per cent against the issue price of Rs 68.
The stock listed at Rs 109, reflecting gains of 60.29 per cent from the issue price on the NSE SME platform. Later, the stock closed at Rs 103.55 apiece, down by 5 per cent.
At the market close, the company’s market valuation stood at Rs 172.18 crore. In volume terms, 20.98 lakh shares of the company exchanged hands on the bourse.
Last week, Durlax Top Surface’s initial public offering (IPO) was subscribed nearly 161 times on the final day, driven by overwhelming participation from institutional investors.
The Rs 40.80 crore IPO comprises a fresh issue of 42 lakh shares worth up to Rs 28.56 crore and an Offer For Sale (OFS) of 18 lakh shares worth up to Rs 12.24 crore.
The price band was Rs 65-68 per share. Out of the fresh issue of Rs 28.56 crore, the company plans to utilise Rs 17.50 crore to part finance working capital requirements and Rs 6 crore towards general corporate purposes.
Promoters, Shravan Suthar and Lalit Suthar, hold around 95 per cent stake in the company while public shareholders hold nearly 5 per cent stake.
Promoter Shravan Suthar, who held 66.94 per cent of the equity stake or 83.01 lakh shares, sold 18 lakh shares through the OFS route.
Established in 2010, Durlax Top Surface manufactures solid surface materials. The company has two brands, namely LUXOR and ASPIRON.
The Gujarat-based company reported a revenue of Rs 90.84 crore and a net profit of Rs 5.05 crore for FY 2023-24.
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