Avana Electrosystems, which manufactures control and relay panels for the power sector, has attracted overwhelming response for its Initial Public Offering (IPO) from investors as it was subscribed 122.65 times on the final day of bidding, i.e. January 14.
Investors have put in bids for 52.49 crore equity shares in the last three days - January 12-14, against the offer size of 42.8 lakh shares via 82,700 applications. Thanks to all categories of investors who supported the issue with non-institutional investors being at the front by bidding 219.36 times their allotted quota.
This follows retail investors and qualified institutional buyers whose reserved portion was subscribed 137.5 times and 54.9 times, respectively.
The IPO share allotment will be finalised by January 15, while Avana Electrosystems shares will be available for trading on the NSE Emerge effective January 19.
The IPO shares traded at more than 20 percent premium in the grey market, increasing from 13-16 percent in last two sessions, the market observers said.
Bengaluru-based Avana Electrosystems is raising Rs 35.22 crore via IPO of 59.7 lakh shares at the upper end of price band of Rs 56-59 per share. The IPO compried of fresh issue of 51.76 lakh shares, and an offer-for-sale of 7.94 lakh shares by promoters.
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The company that manufactures customised control and relay panels ranging from 11kv to 220kv for power system monitoring, control and protection applications transmission lines, power transformers, MV and LV panels, protection relays and substation automation systems will spend Rs 11.55 crore of fresh issue proceeds for setting up integrated manufacturing unit.
Further, Rs 8.6 crore will be used for working capital requirements, and the remainder funds for general corporate purposes.
Indcap Advisors acted as the mechant banker for the Avana Electrosystems IPO.
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