Stories
German Green Steel Shares Crash 10 Percent After Weak Stock Market Listing
- •German Green Steel and Power shares listed on BSE at Rs 143.50 and on NSE at Rs 142, showing a mild premium initially.
- •Despite a strong response with the IPO being subscribed 28.98 times, the stock crashed by nearly 10 percent during trading hours.
- •The Rs 304 crore IPO consisted of a fresh issue of up to Rs 290 crore and an Offer for Sale of 10 lakh equity shares.
- •Proceeds from the IPO will be utilized for expanding the manufacturing facility in Kutch, setting up a hybrid power plant, and debt repayment.
- •The company is a vertically integrated iron and steel manufacturer producing TMT bars, MS billets, and sponge iron.
Key Questions Answered
The Rs 304 crore IPO of German Green Steel and Power Ltd received 28.98 times subscription on the final day of bidding. The non-institutional investors portion was subscribed 54.03 times, retail investors 22.83 times, and qualified institutional buyers 20.93 times.
German Green Steel shares were listed on the BSE at Rs 143.50 per share (a 3 percent premium) and on the NSE at Rs 142 (a 2.16 percent premium). However, by 2:35 PM on listing day, the share price fell by 9.51 percent to drop to Rs 129.85.
The proceeds from the fresh issue will be used for expanding the company's manufacturing facility in Samakhiali, Kutch, Gujarat, and for setting up a hybrid wind and solar power plant. Funds will also be allocated for debt repayment and general corporate purposes.
