Engineering and precision machining services provider Apsis Aerocom's initial share sale attracted robust response from investors on last three days, closing with 120.24 times subscription on March 13. This was despite bloodbath in equity markets which plunged over 5 percent in current week.
The company approached capital markets to raise Rs 35.77 crore via public issue of 32.52 lakh shares. The price band for the offer was Rs 104-110 per share.
Investors have applied for 28.09 crore equity shares against offer size of 23.36 lakh shares via 59,345 applications, as per the subscription data available with the exchange.
Non-institutional investors bid 236.96 times their allotted quota during March 11-13, while the reserved portions of retail and qualified institutional buyers were subscribed 99.95 times and 100.2 times, respectively.
The company will finalise its IPO share allotment by March 16, while its shares will be available for trading on the NSE Emerge effective March 18.
Apsis Aerocom IPO shares traded at more than 15 percent premium in the grey market when others are not attracting any interest from grey market traders, the market observers said.
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The precision engineering company that manufactures components and allied services for the aerospace, defence and healthcare industries will spend Rs 27.02 crore of IPO proceeds for purchase of machinery, and the remainder funds for general corporate purpose.
Currently, the firm operates business through its single manufacturing facility in Bengaluru which equipped with several CNC machines. Now, to further expand production capabilities, it is in the process of establishing second manufacturing facility i.e. manufacturing unit at Hoovinayakanahalli, Bangalore.
"For the establishment and operationalisation of manufacturing unit – II, we propose to utilise a portion of the net proceeds of the issue aggregating to Rs 27.02 crore towards acquisition of machinery. The annual installed capacity is expected to increase to approximately 3,00,000 components per annum," Apsis Aerocom said.
Oneview Corporate Advisors is the sole book running lead manager to the Apsis Aerocom IPO.
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