IPO Was Postponed Before Its Launch, Grey Market Hints Profit.
The IPO of Rosmerta Digital Services has been postponed before its launch. Initially, the IPO was scheduled to open on November 18 and close on November 21. However, the opening date has now been extended. As of now, the new date has not been announced. Rosmerta Digital Services’ IPO was considered the largest ever in the SME segment. Its price band was set at ₹140-₹147 per share and included a fresh issue of 1.4 crore equity shares. Notably, the company’s shares are trading at a premium of ₹22 in the grey market. On November 14, the company decided to postpone its ₹206 crore initial share sale due to adverse market conditions. With this, it became the first company to extend IPO dates in light of the ongoing market weakness. In an advertisement, Rosmerta stated, the IPO, originally scheduled to open on November 18, has been postponed. The company’s shares will be listed on the BSE SME platform. Rosmerta Digital Services Limited is a subsidiary of Rosmerta Technologies Limited. Rosmerta, which provides digitally enabled services for automotive components, and auxiliary equipment, planned to use the IPO proceeds for purchasing office space in Mumbai, establishing warehouse, model workshops and experience centers across India, building IT infrastructure, meeting working capital needs, and driving inorganic growth through acquisitions. The Haryana based company appointed merchant bankers Narnolia Financial Services and Beeline Capital Advisors to manage the issue. Last month, Hyundai’s IPO had an issue size of over ₹27,000 crore. Its performance in the grey market was not promising, and the listing was also disappointing. Investors fear that this IPO might face a similar fate as Hyundai’s. However, experts believe it is too early to make such assumptions, as the IPO has not yet opened. The price in the grey market does not necessarily determine the the premium at which an IPO will be listed.
