Shares of Amir Chand Jagdish Kumar (Exports) Ltd. made a tepid debut on the stock exchanges today, listing at a discount of up to 8% against its issue price of Rs 212. On the NSE, the stock settled at Rs 200, marking a 5.66% drop, while on the BSE, it faced a steeper decline to end at Rs 195.
Despite a moderate subscription of 3.23 times, the market sentiment remained cautious. The grey market premium (GMP) had signalled a flat to marginal listing gain, but the stock succumbed to selling pressure immediately upon debut.
Established in 1969, Amir Chand Jagdish Kumar is a prominent name in the rice industry, specifically known for its flagship "Aeroplane" brand.
The company operates a fully integrated model encompassing the procurement, processing, and marketing of Basmati and speciality rice varieties like Sona Masuri and Brown rice.
The Rs 440-crore fresh issue is primarily earmarked to fund working capital requirements. While the company boasts a strong distribution network of over 400 domestic distributors, investors remain watchful of its high debt-to-equity ratio and the fragmented nature of the rice export market.
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