The initial public offerings of GB Logistics Commerce, and HM Electro Mech, in the SME segment, were fully subscribed on the first day of bidding, on January 24, getting healthy response from investors.
The logistics company entered capital markets to mobilise Rs 25.07 crore via initial share sale of 24.57 lakh equity shares at the upper price band. The IPO consists of solely fresh issue, with a price band of Rs 95-102 per share.
Investors applied for 95.6 lakh shares on day 1, against the offer size of 17.58 lakh shares via 4,324 applications, resulting into a 5.44 times subscription, the bid details on the BSE showed.
All investors participated in the offer on Friday with qualified institutional investors leading the charge with 7 times subscription. Retail investors bid 6.14 times their allotted quota, and non-institutional investors 2.69 times their reserved portion.
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The Maharashtra-based company has raised Rs 7.14 crore by allotting 6.99 lakh shares to institutional investors via anchor book on January 23. The entire IPO proceeds will be utilised for repaying debt, working capital requirements, purchase of truck chassis and truck bodies, and general corporate purposes.
The HM Electro Mech's maiden public issue saw a 7.32 times subscription on Friday, with investors buying 1.93 crore equity shares against the IPO size of 26.46 lakh shares via 11,141 applications, the BSE subscription data showed.
Retail investors seem to have good interest in the company, as their reserved portion was booked 13.84 times. Non-institutional investors picked 3.28 times their allotted quota, but there were no bids from qualified institutional buyers.
HM Electro Mech, which is involved in the turnkey projects of supply, installation, testing and commissioning of pumping machineries along with operation and maintenance, plans to mop up Rs 27.74 crore via IPO of 36.99 lakh shares at the upper end of price band of Rs 71-75 per share.
Recently it has started EPC (engineering, procurement and construction) field projects which involves laying cross country pipe line and civil work related to water supply projects. It also sells products like pump, pipes, transformer, motor and other electronic accessories.
The IPO funds will be utilised mainly for working capital requirements, and the remainder for general corporate purposes.
Both public issues will close on January 28. SKI Capital Services is acting as the book running lead manager for GB Logistics Commerce IPO, while HM Electro Mech IPO is handling by the banker Beeline Capital Advisors.
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