Did Riddhi Display Equipment Shares Just Debut at a 20% Discount?
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Synopsis
Riddhi Display Equipment shares made a disappointing debut on the Indian stock market, listed at a 20% discount. Despite strong interest during the IPO phase, the stock opened significantly lower than expected, raising questions about future performance and investor confidence.
Key Takeaways
- Riddhi Display Equipment shares debuted at a 20% discount.
- The IPO was subscribed 4.91 times overall.
- Retail investors' portion was subscribed nearly eight times.
- Proceeds will fund operational expansions and upgrades.
- No offer-for-sale component was included in the IPO.
Mumbai, Dec 15 (NationPress) The shares of Riddhi Display Equipment had a disappointing entry on the Indian stock exchanges today, leaving investors disheartened. The stock commenced trading on the BSE SME platform at Rs 80 per share, representing a 20% discount from its issue price of Rs 100.
This lackluster debut occurred despite anticipations of a neutral opening aligning with the issue price. In the grey market, Riddhi Display’s IPO had been trading at a premium of zero, suggesting a possible listing around Rs 100.
However, the stock opened considerably lower than expected.
During the three-day bidding period, the Riddhi Display SME IPO garnered a moderate response from investors. The issue was subscribed 4.91 times overall, with retail investors showing significant enthusiasm, as their portion was subscribed nearly eight times.
Meanwhile, the non-institutional investor segment was subscribed 1.92 times, and qualified institutional buyers placed bids worth 2.19 times their allocated quota.
The IPO was open for subscription from December 8 to December 10, with allotments finalized shortly thereafter. The company made its market debut on December 15 on the BSE SME platform.
Riddhi Display set a price band of Rs 95 to Rs 100 per share, raising Rs 24.68 crore through a fresh issue of 25 lakh equity shares. There was no offer-for-sale component in the IPO, and investors had to apply in lots of 1,200 shares, necessitating a minimum investment of Rs 2.4 lakh at the upper end of the price band.
The company intends to utilize the IPO proceeds for expanding its operations. A significant portion of the funds will be allocated for interior development and machinery acquisition for a new manufacturing and assembly unit in Lucknow, Uttar Pradesh.
Remaining funds will be directed towards upgrading machinery and software at its existing Gondal facility in Gujarat, establishing a showroom in Gondal, fulfilling working capital requirements, and supporting general corporate purposes.
The IPO was managed by Jawa Capital Services Pvt. Ltd. as the lead manager, while Maashitla Securities Pvt. Ltd. acted as the registrar. Prabhat Financial Services Ltd. served as the market maker for the issue.
Point of View
I believe this event highlights the unpredictable nature of the stock market. Despite initial investor enthusiasm, the significant drop in Riddhi Display's share price upon debut underscores the importance of thorough market analysis and investor caution in these volatile times.
NationPress
15/12/2025
Frequently Asked Questions
What was the listing price of Riddhi Display Equipment shares?
The shares were listed at Rs 80, which is a 20% discount from the issue price of Rs 100.
How well was the Riddhi Display IPO received?
The IPO was subscribed 4.91 times overall, with retail investors showing strong interest as their portion was subscribed nearly eight times.
What will the proceeds from the IPO be used for?
The proceeds will be used for expanding operations, including the development of a new manufacturing unit and upgrading existing facilities.
Who managed the Riddhi Display IPO?
Jawa Capital Services Pvt. Ltd. was the lead manager, while Maashitla Securities Pvt. Ltd. acted as the registrar.
What is the minimum investment required for the IPO?
Investors had to apply in lots of 1,200 shares, translating to a minimum investment of Rs 2.4 lakh at the upper end of the price band.
