Rubber parts & components maker Defrail Technologies' Initial Public Offering (IPO) was subscribed 98.19 times on January 13, the final day of bidding, backed by demand from across categories of investors.
The company approached capital markets to raise Rs 13.77 crore via maiden public issue of 18.6 lakh shares at Rs 74 per share. The issue was opened on January 9.
Investors have bid 13.18 crore equity shares against the offer size of 13.42 lakh shares via 23,980 applications. Non-institutional and retail investors were at the forefront of the subscription numbers, bidding 119.38 times, and 101.28 times their allotted quotas, respectively, while the portion of qualified institutional buyers was subscribed 71.09 times.
Defrail Technologies will finalise IPO share allotment by January 14, while its equity shares will be available for trading on the BSE SME tentatively on January 16.
Its IPO shares traded at more than 10 percent premium in the grey market, up from 8 percent premium in previous session, the market observers said.
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With two manufacturing plants in Haryana, the company that manufactures rubber parts and components including rubber hose and assemblies, rubber profiles and beadings and rubber moulding parts catering to automotive, railways and defence sectors will spend Rs 7.95 crore of IPO proceeds for purchase of equipment or machineries, and Rs 1.73 crore for purchase and installation of solar panel at manufacturing plants. The remaining amount will be used for general corporate purposes.
Nexgen Financial Solutions acted as the merchant banker for the Defrail Technologies IPO.
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