The initial public offering (IPO) of Fourth Dimension Solutions on the NSE’s SME platform Emerge has seen a slow start, with total bids for just 28,000 shares so far, which represents 0.01 times of the 28,92,000 shares up for sale.
The IPO price is fixed at Rs 30 apiece, which represents a premium of Rs 20 on the face value of Rs 10 per share. The market lot is fixed at Rs 4,000 equity shares and in multiples thereafter, suggesting any investor interested in the IPO will have to make a bid worth at least Rs 1,20,000.
For retail investors, there is a ceiling of Rs 2,00,000 on bids for SME IPOs. The limit for bids by market makers is set at 1,48,000 equity shares. Sarthi Capital Advisors is the leading managers of the issue.
The last SME IPO of 2015 opened on December 30 and will close on Thursday. The company, which has generated negative cash flow in the past four years, intends to use the proceeds to meet its working capital requirements. At present, the promoter group holds 99.98 per cent stake in the company. After the issue, the stake would come down to 73.43 per cent.
Source : The Economic Times
