Goel Construction IPO sees 116 times subscription, Optivalue Tek offer subscribed 60x on final day

Goel Construction IPO

Goel Construction Company, and Optivalue Tek Consulting initial public offerings have received overwhelming response from investors, recording 115.77 times and 59.96 times subscription, respectively, on September 4, the final day of bidding.

Going ahead, both companies will finalise their IPO share allotments by September 8. The trading in their equity shares will commence on the BSE SME and NSE Emerge, respectively, with effect from September 10.

Goel Construction Company, which involves mainly in the construction of cement, power, and dairy plants, has garnered 31.78 crore shares bids from investors during September 2-4, against the IPO size of 27.46 lakh shares via 1.76 lakh applications.

Non-institutional investors led the charge amongst the participants, bidding 165.88 times their allotted quota. The reserved portions of qualified institutional buyers and retail investors were subscribed 124.2 times, and 88.55 times, respectively.

The Rajasthan-based infrastructure construction company is raising Rs 100.15 crore via initial share sale of 38.08 lakh shares, at a valuation of Rs 380 crore. The IPO comprises fresh issue of 30.84 lakh shares, and an offer-for-sale of 7.23 lakh shares by the Goel family.

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Of the total offer size, the company has already raised Rs 27.93 crore via anchor book on September 1, at the upper end of the price band of Rs 250-263 per share.

Goel Construction is set to utilise fresh issue proceeds for the purchase of additional equipments and fleets, repayment of certain borrowings, and the remainder funds for general corporate purpose.

Meanwhile, IT solutions and services provider Optivalue Tek Consulting's initial public offering closed with the 59.96 times subscription on Thursday, with investors buying 26.58 crore shares against the offer size of 44.33 lakh shares via 42,719 applications.

The Delhi-based company aims to mobilise Rs 51.82 crore via IPO which consists of entirely fresh issue of 61,69,600 shares. Of which, it has already raised Rs 14.58 crore via anchor book of 17.36 lakh shares on September 1, a day before the issue opening for public.

The price band for the offer was Rs 80-84 per share.

The IPO funds will be utilised primarily for the development of new products, setting up of branch office at Bangalore, upgrading the existing IT hardware and software, working capital requirements, and general corporate purposes.

Share India Capital Services acted as the merchant banker for the Optivalue Tek Consulting IPO, while the Goel Construction IPO is handled by the Srujan Alpha Capital Advisors LLP.