Arvind and Company Shipping Agencies witnessed healthy demand from investors on the first day of the opening of its initial public offering (IPO) on October 12.
The public issue in the small and medium enterprise (SME) segment was subscribed 15.37 times, with bids coming in for 5.03 crore equity shares against the offer size of 32.76 lakh equity shares.
Retail investors and high net worth individuals (HNIs) bid aggressively at 20.67 times and 11.74 times, respectively, of the allotted quota.
The company, which operates a chartering business, including barges for commercial purposes, intends to raise Rs 14.74 crore via the IPO. The shares are priced at Rs 45 per unit.
The offer comprises a fresh issue of shares. Proceeds from the issue will be used mainly for the capital expenditure of the company, besides general corporate purposes and public issue expenses.
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The Gujarat-based company has reserved 1.68 lakh shares for the market maker, and the remaining 31.08 lakh shares are divided between retail investors and HNIs in a 50:50 proportion.
The issue will close on October 16.
Arvind and Company Shipping Agencies owns five barges and manages two hotels: Hotel Millennium Plaza and Hotel 999.
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The financial performance in the past fiscal years has been robust, with net profit growing sharply from Rs 1 crore in FY22 to Rs 3.47 crore in FY23 and profit margin expanding from 38.96 percent to 48.79 percent during the same period. Net revenue from operations grew from Rs 2.57 crore to Rs 7.1 crore in the same period.
Beeline Capital Advisors is the merchant banker to the issue, while Skyline Financial Services is the registrar to the offer.
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