By Admin 
Auster Systems IPO: Osters Systems Limited (ASL) has a bang entry in the stock market. The company’s issue price was Rs 55 and it was listed at Rs 75.55 i.e. about 37 percent premium. After the listing, there was a pressure of profit booking in a short time and the stock fell about 4 percent to Rs 72.
Why stocks boom?
This IPO received tremendous response from investors. The quota of retail investors was subscribed to 101.81 times. The quota of qualified institutional buyers (QIBS) was filled 236 times. Overall, the IPO received 1076 times subscription, which is a very big figure for the SME segment.
The company was established in 2013. It works in the field of IT services and software development and provides digital solutions to enterprises and startups. The company’s public issue size was Rs 15.57 crore and its shares were listed on the SME platform of BSE. Promoters stake were 91.67% before IPO. Piyush Gupta among the promoters of the company. Gajanan Teni. And Shikir Gupta is included.
What does the company do?
Oster Systems works in the field of IT services and software development. The company has good growth possibilities in the coming years due to increasing demand for digital transformation and cloud-based solutions. The need for IT services in small and medium industries as well as startups is increasing rapidly, which has an opportunity for the company to get new clients. The company’s service diversification and technical capacity can keep it strong in competition.
After the listing on the SME platform, the company will help in raising capital and increasing the brand value. If the company focuses on new projects and international client base, then its business can be stronger.
Companies listed in SME segment have more volatility. In the initial days, there is a sharp fluctuations in share prices, which can lead to risk to short-term investors. Apart from this, there is strict competition in the IT sector and the presence of big companies can become a challenge for small players.
The company’s business is dependent on client projects. If there is a shortage of new orders or contracts, then growth can be affected. Uncertainties and currency flakes related to foreign markets can also affect the company’s income.
Also read: This shares ran like a rocket as soon as they got a big order from the defense ministry, investors got lottery
Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)