New Delhi, July 3 (H.S.): Valencia India, operating in the real estate and construction sector, has disappointed its IPO investors with a weak market debut. The shares were priced at ₹110 but listed at ₹88 on the BSE SME platform, reflecting a 20% decline. The shares fell further to ₹83.60, closing at that level, leading to a 24% loss for IPO investors on the first trading day.

The IPO, totaling ₹48.95 crores, was open for subscription from June 26 to 30 and saw a lackluster response, with an overall subscription of just 1.28 times. The portions reserved for Qualified Institutional Buyers (QIB) and Non-Institutional Investors (NII) were subscribed 1.28 and 1.22 times, respectively, while retail investors subscribed 1.31 times. The IPO issued new shares worth ₹44 crores and involved 4.50 lakh shares sold via an offer-for-sale. The raised funds are designated for working capital and corporate purposes.

Financially, according to the prospectus, the company’s performance has improved, with net profits rising from ₹25 lakhs in 2021-22 to ₹1.94 crores in 2023-24, and revenues increased at over 18% CAGR, reaching ₹5.56 crores from April to December 2024.

Hindusthan Samachar / Jun Sarkar