Amir Chand Jagdish Kumar Shares Make Weak Market Debut, List at 8% Discount

Amir Chand Jagdish Kumar (Exports) Lists at Discount on NSE, Premium on BSE

Amir Chand Jagdish Kumar (Exports) made its market debut on the National Stock Exchange (NSE) on Thursday, with its shares listed at Rs 200 per share, a discount of nearly 6 percent from its initial public offer (IPO) price. This comes after a 3.23 times subscription to the issue between March 24-27 in the primary market.

The company's shares were listed at Rs 200 per share on the NSE, a discount of 5.66 percent from the IPO price. The Rs 440-crore issue had a price band of Rs 201-212 per share. In contrast, the shares of the company were listed at Rs 195 per share on the BSE, a premium of 8.02 percent.

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The company's market capitalisation post listing of shares stood at Rs 2,019.26-crore. Amir Chand's market debut was better than the expectations in the grey market, which had expected up to 2 percent listing gains. Earlier, the Haryana-based company mobilised Rs 60 crore from anchor investors.

The company has a diversified portfolio of rice varieties marketed under several in-house brands and ranks third among peers in terms of revenue. It has a strong production capacity and has expanded into the FMCG staples segment. The company plans to utilise the net proceeds from the issue to fund its working capital requirements and for general corporate purposes.

Amir Chand Jagdish Kumar (Exports) Ltd is a processor and exporter of basmati rice in India. It competes with the likes of other large basmati rice companies, including KRBL Ltd, LT Foods, and Sarveshwar Foods, and various other unorganised processors. Apart from its core basmati rice business, the company has diversified into FMCG products, offering staples and other essential kitchen items.