New Delhi, June 3 (H.S.): Shares of Nikita Papers faced a disappointing IPO listing today, dropping to the lower circuit level shortly after its debut. The shares were offered at ₹104, but started trading on the NSE's SME platform at ₹90, a 13.46 percent drop. Immediately after, they fell further to ₹85.50, resulting in an approximate 17.79 percent loss for IPO investors on the first day. The ₹67.54 crore IPO, open for subscription from May 27 to May 29, received a lukewarm response, with an overall subscription of 1.43 times. The Qualified Institutional Buyers (QIB) portion was only subscribed 0.74 times, while Non-Institutional Investors (NII) and retail investors saw subscriptions of 2.11 and 1.84 times, respectively.

A total of 6,494,400 shares were issued. Proceeds from the IPO will fund a new power plant, working capital needs, and general corporate purposes. The company's financials show consistent net profits—₹6.95 crore in FY 2021-22, ₹8.65 crore in 2022-23, and ₹16.60 crore in 2023-24—despite fluctuating revenue figures. From April to December 2024, net profit reached ₹15.68 crore with revenues of ₹272.38 crore.

Hindusthan Samachar / Jun Sarkar