Quest Laboratories IPO Lists at 59.90% Premium

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 23rd May 2024 - 11:07 am

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Strong listing for Quest Laboratories IPO in NSE-SME segment

Quest Laboratories IPO had a strong listing on 23rd May 2024, listing at ₹155.10 per share, a premium of 59.90% over the issue price of ₹97. Here is the pre-open price discovery for the Quest Laboratories IPO on the NSE.

PRE-OPEN ORDER COLLECTION SUMMARY

Indicative Equilibrium Price (In ₹)

155.10

Indicative Equilibrium Quantity (Number of Shares)

10,24,800

Final Price (In ₹)

155.10

Final Quantity (Number of Shares)

10,24,800

Previous Close (Final IPO price)

₹97.00

Discovered Listing Price premium / discount to IPO Price (₹)

₹+58.10

Discovered Listing Price premium / discount to IPO Price (%)

+59.90%

Data Source: NSE

The SME IPO of Quest Laboratories was a book built IPO with a price band of ₹93 to ₹97 per share. The price was discovered at the upper end of the band at ₹97 per share. On 23rd May 2024, the stock of Quest Laboratories listed on the NSE SME segment at a price of ₹155.10 per share, a premium of 59.90% over the IPO issue price of ₹97. For the day, the upper circuit price has been set at ₹162.85 and the lower circuit price has been set at ₹147.35. As of 10.00 am, the volumes were 12.46 lakh shares while the turnover (value) was at ₹1,928 lakhs. The opening market cap of the stock stands at ₹245.73 crore. The stock will be traded in the ST segment of the NSE, which is for compulsory delivery only. At 10.00 am, the stock is trading below the listing price at ₹149.95. The stock of Quest Laboratories has a face value if ₹10 per share and the market lot comprises of 1,200 shares.

Quest Laboratories – About the IPO

The stock of Quest Laboratories has a face value of ₹10 per share and it is a book built issue. The price for the book building issue is set in the price band of ₹93 to ₹97 per share. Being a book built issue, the final price will be discovered within this band. The IPO of Quest Laboratories has only a fresh issue component and no offer for sale (OFS) portion. It must be remembered that the fresh issue portion is EPS dilutive and equity dilutive, but OFS is just a transfer of ownership and  hence it is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Quest Laboratories will issue a total of 44,49,600 shares (44.50 lakh shares approximately), which at the upper band IPO price of ₹97 per share aggregates to fresh fund raising of ₹43.16 crore. Since there is no offer for sale (OFS) portion, the fresh issue size will also double up as the overall IPO size. Therefore, the overall IPO size will also comprise of the issue of 44,49,600 shares (44.50 lakh shares) which at the upper band IPO price of ₹97 per share will aggregate to overall IPO size of ₹43.16 crore.

Read more about Quest Laboratories IPO

Like every SME IPO, this issue also has a market making portion with a market maker inventory allocation of 2,28,000 shares. Rikhav Securities Ltd will be the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs, post listing. The promoter holding in the company currently stands at 90.36%. However, post the fresh issue of shares in IPO, promoter equity holding share will get diluted to 65.82%. The fresh issue funds will be used by the company for funding the capital expenditure towards purchase of land and machinery for expansion of existing manufacturing facility, and funding working capital needs. Shreni Shares Ltd will be the lead manager to the issue, and Bigshare Services Private Ltd will be the registrar to the issue. The market maker for the issue is Rikhav Securities Ltd. The IPO of Quest Laboratories will be listed on the SME IPO segment of the NSE.

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