Silky Overseas lists at 6% premium, trades lower after market debut

Shares of home textile manufacturer Silky Overseas made a muted debut on the NSE SME platform on Monday, listing at Rs 171 apiece, just 6.2 per cent above the issue price of Rs 161. However, the initial enthusiasm faded quickly, with the stock slipping to Rs 163.1 in early trade — down 4.6% from its opening level.

The listing failed to live up to grey market expectations. In the unlisted market, Silky Overseas shares were quoting at Rs 182 ahead of listing day, suggesting a premium of nearly 13% over the IPO price. The underwhelming debut came as a surprise to many, given the stock’s robust demand during the subscription period.

The Silky Overseas IPO, priced in the range of Rs 153 to Rs 161 per share, saw overwhelming investor interest, particularly from retail and high-net-worth individuals. The issue received bids for 189.82 million shares against just 1.11 million shares available, resulting in a massive oversubscription of 169.93 times, according to data from the NSE.

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Despite the strong subscription numbers, market watchers believe the stock's subdued listing may have been driven by broader market sentiment and early profit booking by speculative investors. Analysts also noted that while the IPO was heavily subscribed, valuations and listing-day volatility likely played a role in dampening the stock’s post-listing performance.

Silky Overseas plans to use the IPO proceeds to expand its operations, strengthen its manufacturing capabilities, and support working capital needs. The company operates in the competitive home textile segment and will now focus on delivering consistent performance to justify investor confidence.

While the initial listing pop may not have matched expectations, market participants will be watching closely to see if Silky Overseas can recover ground and deliver long-term value.

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