Why Did Methodhub Software List at a 20% Discount?
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Synopsis
On December 12, Methodhub Software faced a disappointing stock market entry, listing at a significant discount. Despite initial setbacks, there was a brief recovery in share prices. This article explores the implications of their IPO and the company's future plans.
Key Takeaways
- Methodhub Software listed at Rs 155.20, a 20% discount from IPO.
- IPO total valuation was Rs 102.49 crore.
- Significant investor interest, with 28.91 times overall subscription.
- Company plans to utilize funds for debt repayment and expansion.
- Shares hit 5% upper circuit at Rs 162.90 shortly after listing.
Mumbai, Dec 12 (NationPress) Methodhub Software experienced a disappointing entry into the stock market on Friday, with its shares debuting at a significant discount relative to the IPO price.
The stock commenced trading at Rs 155.20 on the BSE SME platform, reflecting a 20 percent decrease from the issue price of Rs 194 per share.
This listing fell considerably short of expectations, particularly since the grey market premium (GMP) earlier in the day had indicated a potential gain of almost 9 percent.
Rather than enjoying a strong start, the stock launched its market presence in the red. Shortly after its debut, however, Methodhub Software shares made a slight recovery, reaching their 5 percent upper circuit at Rs 162.90.
Despite this uptick, the stock remained over 16 percent below its IPO price.
Methodhub Software had initiated an IPO valued at Rs 102.49 crore, which comprised a fresh issue of Rs 87.50 crore and an offer for sale (OFS) of Rs 14.99 crore.
The public offering was available for subscription from December 5 to December 9, with allotments finalized on December 10.
This IPO saw remarkable interest from investors, garnering a total subscription of 28.91 times. In particular, retail investors subscribed 21.54 times, while the QIB segment was filled 27.55 times.
The highest demand stemmed from non-institutional investors, who subscribed 47.97 times their allotted share.
The company had established a price range of Rs 190–Rs 194 per share, necessitating a minimum bid of 600 shares.
Retail investors were required to invest a minimum of Rs 2,32,800, as they needed to apply for at least two lots.
Methodhub Software intends to utilize the IPO proceeds to pay off certain debts, invest in a subsidiary, enhance working capital, and consider future acquisitions.
Methodhub Software is a leading IT services provider that assists global clients with digital transformation and innovative business solutions.
Point of View
It's crucial to provide a balanced perspective on Methodhub Software's stock market debut. While the initial listing at a significant discount raises concerns, the strong demand during the IPO indicates investor interest. The company's future strategies, including debt repayment and expansion plans, will be essential to watch. Overall, Methodhub's journey reflects the volatile nature of market dynamics and investor sentiment.
NationPress
13/12/2025
Frequently Asked Questions
What was the listing price of Methodhub Software shares?
Methodhub Software shares listed at Rs 155.20, which is 20% lower than the IPO price of Rs 194.
How much was the total IPO amount?
The IPO was valued at Rs 102.49 crore, including a fresh issue of Rs 87.50 crore and an offer for sale of Rs 14.99 crore.
What was the subscription rate for the IPO?
The IPO was subscribed 28.91 times overall, with retail investors subscribing 21.54 times.
What are the future plans of Methodhub Software?
The company plans to use IPO funds to repay borrowings, invest in a subsidiary, support working capital needs, and explore future acquisitions.
Where can I find more information about Methodhub Software?
You can visit Methodhub Software's official website or follow financial news outlets for the latest updates.
