Austere Systems IPO subscribed 1,002 times on final day; Rs 58 cr valued IT services firm receives bids worth Rs 11,185 cr

Austere Systems IPO subscription

Pune-based IT services and solutions company Austere Systems' IPO has attracted overwhelming response from across categories of investors, closing with 1,001.78 times subscription on September 9. This response seems to be far above company's expectations.

The company is raising Rs 15.57 crore via initial public offering (IPO) which comprises of entirely fresh issue of 28.3 lakh shares with price band of Rs 52-55 per share.

Investors have bid 203.36 crore equity shares against the offer size of 20.3 lakh shares via 3.15 lakh applications during September 3-9. These bids are valued at Rs 11,184.85 crore at the upper price band, which is much higher than the company seeking valuation of nearly Rs 58 crore.

Austere is the first SME IPO to receive more than 1,000 times subscription in the current year. Hamps Bio, and Toss The Coin, launched in December 2024, were the last public issues garnering over 1,000x bids.

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Non-institutional investors took the lead amongst the participants, bidding 1,594.57 times their allotted quota. The parts reserved for retail investors and qualified institutional buyers were subscribed 1,090.93 times, and 236.50 times, respectively.

Austere Systems has already raised Rs 4.4 crore via anchor book on September 2.

The software development company intends to utilise Rs 11.6 crore of IPO proceeds for working capital requirements, and the remainder for general corporate purposes.

Meanwhile, Sharvaya Metals' public issue was subscribed 4.56 times with investors buying 97.9 lakh shares against the offer size of 21.46 lakh shares via 5,840 applications. Retail investors bid 6.31 times their reserved portion, while the allotted quotas of non-institutional investors, and qualified institutional buyers were subscribed 4.77 times, and 1.28 times, respectively.

The aluminum products maker approached capital markets to mobilise Rs 58.8 crore via initial share sale of 30 lakh shares. The IPO consists of fresh issue of 25 lakh shares and an offer-for-sale of 5 lakh shares.

The net fresh issue proceeds will be utilised for working capital requirements, civil construction and electrification, purchase of plant and machinery, and general corporate purposes.

The Rs 25.1-crore maiden public issue of Vigor Plast India, the PVC pipes and fittings maker, also received decent response from investors, subscribing 2.64 times. Investors applied for 81.9 lakh shares against the offer size of 30.99 lakh shares via 1,052 applications.

The company will utilise net IPO proceeds for repayment of certain borrowings, development and construction of new warehouse in Gujarat, and general corporate purposes.

All the above companies will finalise their IPOs share allotment by September 10, while their shares will be available for trading on the bourses effective September 12.