Stock of this SME IPO has zoomed 240% against issue price in two weeks

Rudra Gas shares were locked in 10% upper circuit at Rs 214.39, bouncing back 22% from its intraday low, after the company received two orders from HPCL amounting to Rs 9.96 crore

Shares of Rudra Gas Enterprises hit a new high of Rs 214.39 as they were locked in the 10 per cent upper circuit on the BSE on Thursday at 12:42 PM on heavy volumes.

The stock of the civil construction firm bounced back 22 per cent from its intraday low of Rs 175.41, after the company announced it has received two orders from Hindustan Petroleum Corporation Limited (HPCL) amounting to Rs 9.96 crore.

With today's rally, the stock price of Rudra Gas has zoomed 240 per cent against its issue price of Rs 63 per share in two weeks. The company made its stock market debut on February 15. It is listed on SME (small, medium, and micro enterprises) segment on the BSE only. The minimum lot size for the scrip is 2,000 shares.

As many as 1.54 million equity shares, representing 18.3 per cent of total equity of Rudra Gas, have changed hands on the BSE. Since its listing, on an average, sub-400,000 shares used to trade on the counter.

The trading in the equity shares of Rudra Gas has transferred from Trade for Trade segment (MT Group) to Rolling segment with effect from today.

In an exchange filing, Rudra Gas said the orders received from HPCL are for laying of PE pipe network & associated works along with last mile connectivity and direct marketing agency for Piped Natural Gas (PNG) connections in geographical areas of Banka (Bihar), Dumka, Godda, Jamtara, Pakur & Sahibganj districts of Bihar/ Jharkhand and Dausa, Karauli, Sawai Madhopur and Tonk districts of Rajasthan. The contracts are to be executed in 18 months.

Rudra Gas Enterprises is engaged in various facets of the infrastructure sector. It is mainly engaged in gas distribution network projects, fiber cable network, renting of construction machinery and vehicles. It provides end-to-end solutions for the city gas distribution sector.

Its services ensure the safe and efficient transportation of vital resources such as Compressed Natural Gas (CNG) and PNG. In Fiber cable network sector, the company offers services of installations of optical fiber cable and maintenance thereof. Its main focus is on delivering projects in a timely manner while upholding the highest standards of safety.

The company derives revenue from following two business verticals: a) Gas Pipeline Projects b) Fiber Cable Projects c) Renting of Construction Machineries and vehicles.

The Rudra Gas IPO had received strong response from investors with the issue getting subscribed 350.75 times. The public issue was subscribed 404.38 times in the retail category and 286.62 times in the other category.