Falcon Technoprojects India IPO Lists at -8.70% Discount

Falcon Technoprojects India IPO - Lists at a Discount of -8.70%

Falcon Technoprojects India had a weak listing on 26th June 2024, debuting at ₹84.00 per share, a discount of -8.70% over the issue price of ₹92 per share in the IPO. Below is the pre-open price discovery for the Falcon Technoprojects India IPO on the NSE.

PRE-OPEN ORDER COLLECTION SUMMARY

Data Source: NSE

The SME IPO of Falcon Technoprojects India was a fixed price IPO with the IPO price fixed at ₹92 per share. On 26th June 2024, the stock of Falcon Technoprojects India listed at ₹84.00 per share, marking a discount of -8.70% over the IPO price of ₹92.00 per share. For the day, under the 5% circuit filter category, the upper circuit price has been set at ₹88.20 and the lower circuit price at ₹79.80.

As of 10:18 am, the volumes traded were 3.04 lakh shares with a turnover (value) of ₹259 lakhs. The opening market cap of the stock stands at ₹47.25 crore. The equity shares of Falcon Technoprojects India (Symbol: FALCON) will be in Series ST (Trade for Trade Surveillance Segment (TFTS) – Settlement Type W) and subsequently shifted to Series SM (Normal Rolling Segment – Settlement Type N). At 10:18 am, the stock is trading at ₹88.20, which is locked in the 5% upper circuit after a weak listing at ₹84.00 per share in the morning. Falcon Technoprojects India has a face value of ₹10 per share, and the market lot comprises 1,200 shares. The stock trades under the NSE symbol (FALCON) with the ISIN code for demat credits being INE0PQK01013.

About Falcon Technoprojects India IPO

The stock of Falcon Technoprojects India has a face value of ₹10 per share and it is a fixed price issue. The fixed price for the IPO has been set at ₹92 per share. Being a fixed price issue, the question of price discovery does not arise. The IPO of Falcon Technoprojects India has only a fresh issue component and no offer for sale (OFS) portion. While the fresh issue portion is EPS dilutive and equity dilutive, the OFS is just a transfer of ownership and  hence is not EPS or equity dilutive. As part of the fresh issue portion of the IPO, Falcon Technoprojects India will issue a total of 14,88,000 shares (14.88 lakh shares), which at the upper band IPO price of ₹92 per share aggregates to fresh fund raising of ₹13.69 crore. Since there is no OFS, the fresh issue size will also double as the overall issue. Therefore, the overall IPO size will also comprise of the issue of 14,88,000 shares (14.88 lakh shares) which at the upper band IPO price of ₹92 per share will aggregate to overall IPO size of ₹13.69 crore.

Read more about Falcon Technoprojects India IPO

Like every SME IPO, this issue also has a market making portion. The company has set aside a total of 74,400 shares as quota for market inventory. Nikunj Stock Brokers Ltd has already been appointed as the market makers to the issue. The market maker provides two-way quotes to ensure liquidity on the counter and low basis costs. The company has been promoted by Bharat Parihar and Sheetal Parihar. The promoter holding in the company currently stands at 84.20%. However, post the fresh issue of shares, promoter equity holding share will get diluted to 60.81%. The fresh issue funds will be used by the company for meeting the working capital needs of the company as part of its regular operations. A small part of the IPO proceeds has also be set aside for general corporate purposes. Kunvarji Finstock Private Ltd will be the lead manager to the issue, and KFIN Technologies Ltd will be the registrar to the issue. The market maker for the issue is Nikunj Stock Brokers Ltd. The IPO of Falcon Technoprojects India will be listed on the SME IPO segment of the NSE.