New Delhi-based steel wire mesh gabions manufacturer Gabion Technologies' Initial Public Offering (IPO) remained in strong demand even for the second day of bidding, January 7, subscribing 194.83 times with support from across categories of investors.
Investors have put in bids for 50.21 crore equity shares against offer size of 25.77 lakh shares via 1.2 lakh applications.
Retail as well as non-institutional investors remained at the forefront to support the Gabion IPO, bidding 275.21 times and 241.25 times, respectively. The part reserved for qualified institutional buyers was subscribed 6.45 times.
Meanwhile, Gabion IPO shares traded at a 37 percent premium in the grey market, an unofficial market for trading in IPO shares till their listing, the market observers said.
Incorporated in 2008, Gabion Technologies that manufactures steel wire mesh gabions and provides services and technology in the fields of geo-systems, geotechnical engineering and ground improvement techniques is raising Rs 29.16 crore via initial share sale of 36 lakh shares at the upper end of price band of Rs 76-81 per share.
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Of this, Rs 8.28 crore has already been raised by the company by issuing 10.22 lakh shares to anchor investors on January 5.
Gabion intends to utilise Rs 22.11 crore of IPO proceeds for its working capital requirements, Rs 1.05 crore for purchasing of plant and machinery, and the remainder funds for general corporate purposes.
The company's products and technologies are utilised majorly in civil engineering, infrastructure development, and environmental protection projects.
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