The maiden public issue of Arvind and Company Shipping Agencies continued to receive robust demand from investors since the beginning. On the final day of bidding (October 16), the investors bought 117.81 crore equity shares, which was 359.62 times over the offer size of 32.76 lakh equity shares.
Retail investors bought 321.96 times the allotted quota, while the portion set aside for high networth individuals was subscribed 436.15 times.
The offer was subscribed 36.72 times till the second day of bidding, October 13.
The Gujarat-based company aims to raise Rs 14.74 crore via public issue of 32.76 lakh equity shares at Rs 45 per share. This is a book built issue comprising only a fresh issue by the company.
The barge chartering services company has reserved 1.68 lakh equity shares for the market maker and the rest of the shares i.e. 31.08 lakh shares are considered as a net issue.
Of the net issue, 50 percent of shares each has been reserved for retail investors and HNIs, respectively.
Arvind and Company Shipping Agencies will spend Rs 11.02 crore for the capital expenditure towards purchasing of barges, and Rs 1.82 crore for general corporate purposes. And the remaining funds Rs 1.9 crore will be used for public issue expenses.
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The firm earns revenue majorly from its two major business verticals - one is chartering of barges and the second is hotel and hospitality. As of May 2023, it has five barges which are used by coastal transporters to transport their goods or equipment.
Under the hospitality business vertical, it has a portfolio of two hotels namely Hotel Millennium Plaza, and Hotel 999 in the Jamnagar city of Gujarat, which started contributing in the current financial year FY24.
In the two months period of FY24, the company recorded revenue of Rs 2.33 crore including barges rental income of Rs 1.96 crore and and hotels division income of Rs 0.37 crore.
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In the financial year FY23, profit increased sharply to Rs 3.47 crore, compared to Rs 1 crore in the previous year, and in the same period, revenue from operations increased to Rs 7.11 crore, from Rs 2.57 crore in the previous fiscal.
The company will finalise the basis of allotment of IPO shares by October 19 and the equity shares will be credited to demat accounts of eligible investors by October 23.
The trading in its equity shares will commence on the NSE Emerge, with effect from October 25, as per the IPO schedule.
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Arvind and Company Shipping Agencies IPO shares also received robust demand in the grey market, trading at around 40 percent premium over the issue price, analysts on anonymity said. The grey market is an unofficial platform for trading in the IPO shares till the listing.
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