Mumbai: Majestic Research Services and Solutions Ltd’s follow-on public offer (FPO) to raise up to Rs 10 crore was oversubscribed on Monday afternoon, the last day of the offer.
The issue, which had opened on 28 November, was subscribed 1.16 times by 2:45pm, data from BSE showed.
Majestic Research is the country’s first listed market research company, and the first on the SME (small and medium enterprises) platform to go for a follow-on public offer.
The company plans to use the proceeds for working capital requirements, among other purposes.
Pantomath Capital Advisors (P) Ltd, is the book running lead manager to the issue.
At 3 pm, shares of the company were down 14.86% at Rs 126 on the BSE, while the benchmark 30-share Sensex was up 0.33% at 26,317.46 points.
Majestic Research was listed on BSE’s SME platform in July 2015 at an issue price of Rs 12.75 a share, and the price has since then multiplied nearly 10 times.
The BSE SME IPO index was launched on 14 December 2012 at a base level of 100. Since then, it has multiplied more than 10 times to 1,018.66 points.
Both BSE and National Stock Exchange of India Ltd (NSE) launched their SME platforms in 2012.
SMEs are small companies often in the early growth stages. Some have the potential to deliver high returns although some others carry a high risk of failure. Investments in these companies are ideally for investors who can stomach significant risk.
Source: livemint
