GRE Renew Enertech IPO fully booked; Indo SMC issue subscribed 94% on day 1

GRE Renew Enertech IPO News

• GRE Renew Enertech IPO fully booked at 2.1 times, QIB leads
• Indo SMC IPO subscribed 94%

Did our AI summary help?

Solar energy and LED lighting solutions provider GRE Renew Enertech's Initial Public Offering (IPO) was fully booked at 2.1 times, but the public issue of Indo SMC — which manufactures enclosure box for energy meters and transformers — failed to get full subscription on the first day of bidding, i.e. January 13.

Both public issues from Ahmedabad-based companies are set to close on January 16.

Investors have applied for 56.86 lakh GRE Renew Enertech equity shares against its offer size of 57.06 lakh shares via 196 applications, which resulted in to 2.1 times subscription.

Qualified institutional buyers provided strong support to the offer, in fact, helping the offer get fully subscribed as their reserved portion saw 7.04 times subscription, however, the parts set aside for non-institutional and retail investors were undersubscribed at 36 percent and 32 percent, respectively.

Gujarat-based rooftop and ground mount solar solutions provider GRE Renew Enertech approached capital markets to raise Rs 39.56 crore via IPO of 37.68 lakh shares at the upper end of price band of Rs 100-105 per share.

Click Here To Read All IPO News

Of which, it has already raised Rs 11.15 crore by issuing 10.62 lakh shares to nine anchor investors at Rs 105 per share on January 12. Strategic Sixth Sense Capital Fund, North Star Opportunities Fund, SMC India Opportunities Fund, PSEB Alpha Fund, and Viney Growth Fund were among nine investors participated in the anchor book.

GRE Renew Enertech, which specialises in providing solar energy solutions to industrial and commercial customers, will utilise Rs 31.58 crore of IPO proceeds for setting up of 7.20 MW (AC) / 9.99 MW (DC) ground mounted solar power plant, and the remainder funds for general corporate purposes.

Meanwhile, Indo SMC that manufactures several products catering to electrical, industrial, and infrastructural applications saw 94 percent subscription for its maiden public issue as investors picked 41.65 lakh shares against the offer of 44.15 lakh shares via 1,808 applications.

Retail investors were at the leading position, bidding 1.6 times their allotted quota, followed by non-institutional investors whose portion was subscribed 74 percent, however, qualified institutional buyers have not put in bids yet.

Indo SMC that makes enclosure box for energy meters, transformers, distribution boxes and panels, fiberglass reinforced plastic grating, junction boxes, feeder pillars and other power distribution and circuit protection switchgears is raising Rs 91.95 crore via IPO of 61.71 lakh shares which comprises of entirely fresh issue.

The price range for the offer is Rs 141-149 per share.

The company has already mobilised Rs 26.16 crore via anchor book launched on January 12. Total 17 investors participated in the anchor book, including HDFC Bank, 360 ONE, Mastergrowth 369 Alternate Investment Trust, Bengal Finance, Venturex Fund, Visionary Value Fund, Saint Capital Fund, and Vikasa India which all picked up 17.56 lakh shares.

Of IPO proceeds, Rs 25.7 crore will be utilised for purchasing plant and machinery, and Rs 52 crore for working capital requirements of the company. The remaining amount will be used for general corporate purposes.

At present, the company has three units - Irana (Ahmedabad), Ghiloth (Rajasthan), and Nashik (Maharashtra) where it is willing to install new plant, machinery and laboratory equipment to increase capacity to desired levels to meet the demand.

Share India Capital Services is acting as the merchant banker for the GRE Renew Enertech IPO, while the book running lead manager for Indo SMC IPO is GYR Capital Advisors.