In a disappointing debut on the BSE SME platform, LGT Business Connextions Ltd saw its shares list at a steep 20 percent discount to the issue price and subsequently hit the lower circuit on the first day of trading. The listing, which took place on August 26, 2025, has raised concerns among investors and analysts about valuation, demand strength, and broader sentiment in the SME IPO segment.
Key Highlights From The Listing Day
• Issue price: Rs 107 per share
• Listing price: Rs 85.60, reflecting a 20 percent discount to the IPO price
• Intraday low: Rs 81.32, triggering the lower circuit within hours of market open
• Market capitalization post-listing: Rs 76.2 crore, down from Rs 93.7 crore pre-issue valuation
• Trading volume: Over 1.2 lakh shares exchanged hands in the first two hours
IPO Structure And Subscription Details
• Total issue size: Rs 28.09 crore, comprising a fresh issue of Rs 25.28 crore and offer-for-sale of Rs 2.81 crore
• Fixed price issue with a lot size of 1,200 shares, requiring a minimum investment of Rs 1.28 lakh for retail investors
• Subscription status: Overall 1.25 times, with retail portion subscribed 1.75 times and NII quota at 0.78 times
• Grey market premium remained flat throughout the subscription period, indicating muted investor enthusiasm
Company Profile And Business Model
• LGT Business Connextions operates as a travel service aggregator, offering customized tourism packages, hotel bookings, cruise arrangements, and MICE travel solutions
• The company caters to both individual and corporate clients, with a focus on domestic and international travel logistics
• Revenue streams include packaged tours, standalone services, and trade fair travel support
• Despite a diversified portfolio, the company faces stiff competition from established travel tech platforms and aggregators
Investor Sentiment And Market Reaction
• The weak listing was attributed to tepid demand, lack of institutional participation, and concerns over valuation metrics
• Analysts noted that the IPO was priced aggressively relative to earnings and sector benchmarks
• Retail investors expressed disappointment over the immediate erosion of value, with many calling for tighter pricing discipline in SME issues
• The broader SME IPO market has seen mixed performance in recent weeks, with several listings trading below issue price
Financials And Use Of Proceeds
• The company plans to use the IPO proceeds for capital expenditure, working capital needs, and general corporate purposes
• No anchor investors participated in the offering, and the absence of institutional backing may have impacted post-listing stability
• LGT Business Connextions has not yet released Q1 FY26 financials, leaving investors with limited visibility on near-term performance
Regulatory And Governance Notes
• The IPO was managed by Mark Corporate Advisors Pvt Ltd, with Skyline Financial Services Pvt Ltd as the registrar
• Asnani Stock Broker Pvt Ltd acted as the market maker, responsible for providing liquidity in the SME segment
• The company has committed to timely disclosures and compliance with BSE SME listing norms
Conclusion
LGT Business Connextions Ltd’s IPO listing at a 20 percent discount and subsequent fall to the lower circuit underscores the risks associated with SME market entries lacking strong institutional support and valuation clarity. While the company’s travel aggregation model offers long-term potential, the weak debut highlights the need for cautious investor participation and more conservative pricing strategies. As the stock stabilizes in the coming sessions, stakeholders will be watching closely for operational updates and financial disclosures to assess recovery prospects.
Sources: LiveMint, Chittorgarh IPO Dashboard, Moneycontrol IPO Tracker.
