The initial public offering (IPO) of Arvind and Company Shipping Agencies continued to attract a lot of attention from investors on October 13, the second day of bidding, as the participants bought 12.03 crore equity shares against offer size of 32.76 lakh shares, resulting into 36.72 times subscription.
Retail investors remained at the forefront, buying 58.25 times the allotted quota, while high networth individuals (HNIs) have bid 19 times the reserved portion.
The Gujarat-based company that runs the chartering business has reserved 1.68 lakh equity shares for the market maker, of the total issue size of 32.76 lakh shares. The remaining number of shares, i.e. 31.08 lakh shares, is considered as the net issue, which is further divided equally amongst retail investors and HNIs. That comes to 15.54 lakh shares each for both categories of investors.
The offer, which will close on October 16, was oversubscribed 15.37 times on October 12, the first day of bidding.
The firm aims to mop up Rs 14.74 crore via public issue at an issue price of Rs 45 per share, comprising only a fresh issue component.
Most of the fresh issue money will go for the capital expenditure of the company, and the remaining will be used for general corporate purposes and public issue expenses.
Incorporated in 1987, Arvind and Company Shipping Agencies is part of the Arcadia group, founded by promoter Arvind Kantilal Shah and his father Kantilal Premchand Shah. Arcadia Group provides various port construction and chartering services, having a portfolio of approximately 34 barges.
Particularly the firm is primarily engaged in chartering business, owning five barges and managing two hotels (Hotel Millennium Plaza and Hotel 999).
Grey Market Premium
Arvind and Company shares attracted more than a 30 percent premium over the issue price in the grey market, analysts said on condition of anonymity.
The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing.
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