TechD Cybersecurity Share Price: Stock Lists At 90% Premium; Hits Upper Circuit

TechD Cybersecurity Ltd., backed by ace investor Vijay Kedia, made a strong debut on the stock market on Monday, Sept. 22. Shares of the company were listed at Rs 366.70 apiece on NSE SME platform, at a premium of 90% over its issue price of Rs 193 per share.

Minutes into the trading, the scrip further rose 5%, hitting upper-circuit level, to reach Rs 385.

The Rs 38.99-crore IPO was open for subscription from Sept. 15 to Sept. 17. The NSE SME issue saw a strong demand across investor categories during the three-day bidding period, with an overall subscription of 718.3 times. Investors placed bids for 96,53,61,000 shares against 13,44,000 shares on offer.

Ahead of its listing, the TechD Cybersecurity Ltd. IPO created a buzz in the grey market. According to Investorgain, the grey market premium (GMP) stood at Rs 210 per share as of 8 a.m. on Sept. 22, ahead of listing. Considering the upper end of the IPO’s price band of Rs 193, the GMP suggested a listing price of Rs 403 per share. This implied an expected listing gain of 108.81 % per share over the issue price.

Note: GMP does not represent official data and is based on speculation.

TechD Cybersecurity IPO was a book-building issue worth Rs 38.99 crore. The IPO was entirely a fresh issue of 20 lakh shares.

The price band for the IPO was set between Rs 183 and Rs 193 per share.

The IPO saw overwhelming demand across investor categories. The Qualified Institutional Buyers (QIBs) subscribed the issue 284.17 times, while Non-Institutional Investors (NIIs) booked the issue 1,279.03 times. The retail portion was subscribed 726 times.

The IPO’s strong market buzz is partly attributed to the backing of seasoned investor Vijay Kedia, who holds around 7% stake in the company.

TechD Cybersecurity Ltd. plans to invest the net proceeds from the IPO in human resources. A portion will be allocated for funding capital expenditure for setting up a global security operation centre in Ahmedabad. The remaining funds will be used for general corporate purposes.

TechD Cybersecurity Ltd., founded in January 2017, is a cybersecurity company that helps enterprises protect their digital assets. It offers a range of services to keep businesses secure in the digital space. Its offerings include MSSP solutions, cyber program management, VAPT, compliance services, specialised services and staff augmentation to address various client requirements. The company’s clientele includes Adani Group, Zensar Technologies, Astral, Kedia Capital, ETO GRUPPE Technologies GmbH and IQM Corporation, among others.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.