GSM Foils IPO sees 63.8x subscription on Day 2; Vilas Transcore issue booked 7x

SME IPO

The investors' demand remain strong for public issues in the small and medium enterprise (SME) segment as the initial share sale of GSM Foils was subscribed 63.8 times, while the Vilas Transcore IPO saw 7 times subscription on May 27.

Investors bought 21.94 crore equity shares on the second day of bidding, against the offer size of 34.4 lakh equity shares, the subscription data on the NSE showed.

Retail investors remained aggressive, picking 104.1 times the allotted quota, while institutional and non-institutional investors bid 30.38 times the portion set aside for them.

The strip foils manufacturing company launched its Rs 11.01-crore public issue on May 24. It was subscribed 16.63 times on the first day of its bidding.

The fixed price issue comprises solely a fresh issue of 34.4 lakh equity shares. The issue price has been fixed at Rs 32 per share.

GSM, which makes blister foils and aluminium pharma foils used for packaging pharmaceutical medicines, will spend fresh issue money for the purchase of plant and machineries, working capital requirements, and general corporate purposes.

The public issue of the power distribution and transmission components maker garnered healthy interest from investors on the first day of bidding. The participants bid for 4.53 crore equity shares against the IPO size of 64.8 lakh equity shares.

Investors bought 14.5 times the allotted quota in the retail investors, while non-institutional investors bid 8.07 times the portion set aside for them and qualified institutional investors picked up 5.3 times the reserved portion.

The Gujarat-based company is looking to raise Rs 95.26 crore through its maiden public issue, which comprises only fresh issue of 64.8 lakh equity shares. The price band for the offer has been fixed at Rs 139-147 per share.

It alread mobilised Rs 27.12 crore via anchor book on May 24, a day before the issue opening. India-Ahead Venture Fund, Meru Investment Fund, AG Dynamic Funds, Shubkam Ventures, and Finavenue Capital Trust are amongst institutional investors participated in the anchor book.

Vilas Transcore that produces electrical lamination products will utilise fresh issue proceeds for its strategic investment and acquisitions, construction of factory building, acquiring and installing additional plant and machinery, general corporate purpose, and IPO expenses.