Desco Infratech Limited, an infrastructure company based in India, made a lukewarm stock market debut on the BSE SME platform, opening at ₹160, a 6.67% premium over its issue price of ₹150. The IPO was oversubscribed 83.75 times, raising ₹30.75 crore for corporate expansion and machinery acquisition. Despite an initial premium, grey market trends suggest weakening demand.
Desco Infratech Limited, an infrastructure company specializing in city gas distribution, power, and water projects, had a subdued debut on the BSE SME platform, opening at ₹160 per share. This marks a 6.67% premium over its IPO issue price of ₹150, signaling moderate investor interest.
Desco Infratech’s IPO, which was open for subscription from March 24 to March 26, saw overwhelming demand, with a subscription rate of 83.75 times. The IPO price band was set at ₹147 to ₹150 per equity share, and the company aimed to raise ₹30.75 crore to fund corporate expansion, machinery acquisition, and working capital requirements.
Company Profile and Market Presence
Founded in 2011, Desco Infratech Limited has a strong presence in India’s infrastructure sector, focusing on engineering, planning, and construction. The company operates across 55 cities in 14 states, laying over 4,000 km of pipelines and supplying piped natural gas to more than 200,000 customers. Its services extend to power transmission, renewable energy projects, and water infrastructure development.
Grey Market Performance and Future Outlook
Desco Infratech’s Grey Market Premium (GMP) stood at ₹5.5 on the listing day, indicating an estimated listing price of ₹155.5 per share. However, recent trends suggest a decline in investor enthusiasm, with GMP fluctuating between ₹0.00 and ₹20.00 over the past 15 sessions.
While the IPO attracted strong initial demand, the tepid listing suggests cautious market sentiment. Analysts believe the stock’s future performance will depend on the company’s execution of planned projects and broader market trends.
