Mittal Sections, the mild steel sections and structural steel products manufacturer, has seen decent response for its initial public offering from investors and closed it with 2.19 times subscription on October 9.
The company launched its 37 lakh shares initial share sale on October 7 with the aim to raise Rs 52.91 crore at the upper end of price band of Rs 136-143 per share.
Investors have applied for 81.11 lakh shares in the offer via 3,603 applications with retail investors taking the lead bidding 4.08 times their allotted quota.
The parts set aside for qualified institutional buyers and non-institutional investors were subscribed 1.13 times and 60 percent, respectively.
The IPO share allotment will be finalised till October 10, while Mittal Sections shares will debut on the BSE SME effective October 14.
The Gujarat-based company that manufactures MS bars, angles, and channels through its two manufacturing plants will utilise IPO proceeds mainly for acquisition of land, construction of factory building and purchase of plant & machineries, and its working capital requirements.
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Further, the funds will also be used for repayment of certain borrowings, and general corporate purposes.
The financial performance reported in the last fiscal was mixed with Mittal Sections recorded profit at Rs 3.6 crore for the fiscal 2025, growing 90.7 percent from Rs 1.89 crore in previous year. However, revenue during the same period fell 15.2 percent to Rs 136.86 crore, down from Rs 161.5 crore.
Wealth Mine Networks acted as the merchant banker for the Mittal Sections IPO.
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