Vama Woven Fab shares list flat, slip 5 percent on debut day
The plastic sacks maker's IPO listed at its issue price on BSE SME before falling nearly 5 percent on its first trading day.
Investors got some disappointing news in the stock market today. The IPO of Vama Woven Fab, a company that makes plastic sacks, listed today on the BSE SME platform, but it did not meet the expectations investors had before listing. The company had fixed the IPO share price at Rs 341, and investors had hoped for a listing gain of at least 10 to 20 percent. Instead, the share listed at the same Rs 341, meaning investors gained just one rupee. Disappointment deepened further as the stock fell nearly 5 percent on its very first day of trading, meaning the money invested shrank instead of growing.
The Rs 50 crore IPO was open for subscription from September 15 to September 17. The issue received an overall subscription of 2.53 times, which cannot be called a very strong response. Qualified Institutional Buyers (QIBs) had applied for shares in the issue. The High Net-worth Individual (HNI) category saw 1.56 times subscription, while retail investors put in applications worth 2.80 times. Because of this, expectations were already low that the stock would see a big jump on listing day.
Under this IPO, the company sold 14,52,800 new shares. The company had already disclosed how the Rs 50 crore raised would be used. Of this, Rs 1.36 crore will go towards building a shed, Rs 7.25 crore towards buying new machinery, Rs 26.50 crore towards working capital for daily operations, Rs 7 crore towards the operations of another company, and Rs 7.43 crore towards IPO expenses.
Vama Woven Fab is the company that makes the sturdy plastic sacks used for sugar, cement and fertiliser. These sacks are made from PP and HDPE plastic. The company's factory is in Daman, where sacks are made according to customer requirements.
The company's profit has been rising steadily. Between 2024 and 2026, the company's net profit grew 109 percent to Rs 11.55 crore. Along with this, the company's total income also grew 177 percent to reach Rs 214.62 crore. However, despite the rise in income, the company carried a debt of Rs 25.44 crore as of March 2026. The company also has reserves of Rs 24.96 crore.
