Fractal Industries IPO subscribed 5.13 times on final day; listing likely next week

Fractal Industries IPO News

• Fractal Industries IPO subscribed 5.13 times on final day
• IPO share allotment to be finalised by February 19
• Fractal Industries shares to trade on the BSE SME effective February 23

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Garment manufacturer Fractal Industries' initial public offering has garnered decent response from investors, subscribing 5.13 times on the final day of bidding, i.e. February 18.

The company approached capital markets to raise Rs 49 crore via maiden public issue at the upper end of price band of Rs 205-216 per share. The IPO comprises of entirely fresh issue of 22.68 lakh shares.

Investors have put in bids for 83.28 lakh shares against offer size of 16.23 lakh shares via 3,270 applications during February 16-18. Non-institutional investors and qualified institutional buyers were at the leading position to support the offer subscription, bidding 6.12 times and 5.95 times their allotted quota.

The part set aside for retail investors was subscribed 4.09 times.

The IPO share allotment will be finalised by February 19, while its shares will be available for trading on the BSE SME effective February 23.

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Mumbai-based Fractal Industries, a full service garment manufacturing and technology-driven supply chain management company focused on fast moving, high quality apparel for e-commerce marketplaces (Myntra, Ajio etc), has already raised Rs 13.93 crore by issuing 6.45 lakh shares to six anchor investors including Minerva Ventures Fund, Visionary Value Fund, Zeal Global Opportunities Fund, and Arnesta Global Fund.

The company intends to utilise Rs 36.5 crore of IPO proceeds for its working capital requirements, and the remaining amount for general corporate purposes.

"... require additional working capital for executing increased order volumes, high inventory levels, high debtors, advance payments to suppliers and requirement of security deposits and for other corporate purposes," Fractal Industries said.

Its manufacturing unit with a monthly capacity of more than 3 lakh garment unit is located at Mumbai with warehouses in Gujarat, Maharashtra, Haryana, West Bengal and Karnataka.

Finaax Capital Advisors is acting as the merchant banker for the Fractal Industries IPO.