Kataria Industries and Macobs Technologies' initial public offerings garnered overwhelming response from investors, reporting three-digit subscription each on July 19, the final day of bidding.
The public issue of the low relaxation pre-stressed concrete (LRPC) strands and steel wires manufacturer has seen a 365.92 times subscription, with investors buying 148.83 crore equity shares against the offer size of 40.67 lakh shares.
Non-institutional investors (high networth individuals) led the charge among participants, picking 969.8 times the portion set aside for them, while retail investors and qualified institutional buyers bid 274.4 times and 171.06 times the allotted quotas.
The Madhya Pradesh-based company launched its Rs 54.58-crore public issue on July 16, with a price band of Rs 91-96 per share. It has raised Rs 15.53 crore from four anchor investors, namely, AG Dynamic Funds, North Star Opportunities Fund VCC-Bull Value Incorporated VCC Sub-Fund, Radiant Global Fundclass B Participating Shares, and Eminence Global Fund PCC- Eubilia Capital Partners Fund I - at a price of Rs 96 per share.
The firm is going to spend the IPO funds primarily on capital expenditure for plant and machinaries, and repaying debts, alongside general corporate purposes.
With two manufacturing plants in Madhya Pradesh, Kataria supplies products to several sectors such as infrastructure, roads, metros, railways, high rise buildings, atomic reactors, LNG tanks, and power transmission & distribution lines.
The Rs 19.46-crore maiden public issue of Macobs, which offers men's grooming products, has recorded 183.17 times subscription on its last day, i.e., Friday. Investors bid 40.89 crore equity shares against the IPO size of 21.52 lakh shares, the NSE data showed.
Here also, non-institutional investors took the lead, buying 622.64 times the reserved portion. Retail investors bid 176.87 times the allotted quota, followed by QIBs who picked 33.4 times the part set aside for them.
Before opening the issue on July 16, the Rajasthan-based company had mobilised Rs 3.32 crore from three anchor investors at the upper end of the price band of Rs 71-75 per share. Foreign portfolio investors NAV Capital VCC – NAV Capital Emerging Star Fund, and Astorne Capital VCC- Arven bought 1.49 lakh and 1.47 lakh shares, respectively, while J4S Venture Fund - I picked 1.47 lakh shares.
Macobs will spend issue proceeds on customer acquisition via marketing and awareness, repaying debts, working capital requirements, and general corporate purposes.
Both SME companies will finalise the basis of allotment of the IPO shares on July 22 and their shares will be credited to demat accounts of successful investors by July 23.
Trading in their shares will be available on the NSE Emerge, effective July 24.
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