The initial public offerings (IPOs) of Positron Energy and Sunlite Recycling Industries received a strong response from all kinds of investors, despite subdued secondary markets. Both issues closed on August 14.
Positron Energy's IPO was subscribed 385.88 times, with investors purchasing 56.43 crore equity shares against the offer size of 14.65 lakh equity shares, according to subscription data from the National Stock Exchange. The company, which provides management and technical advisory services in the oil and gas industry, launched the issue on August 12 to raise Rs 51.21 crore at the upper price band.
The IPO consisted solely of a fresh issue of 20.48 lakh equity shares, with no offer-for-sale component. The price band for the issue was set at Rs 238-250 per share.
Non-institutional investors were particularly aggressive, bidding 807.1 times the allotted quota, followed by retail investors and qualified institutional buyers who subscribed 352.19 times and 230.87 times, respectively, for their portions.
Gujarat-based Positron Energy, which provides end-to-end solutions for gas distribution to industries across India, will utilize the net proceeds from the fresh issue for working capital requirements and general corporate purposes.
Meanwhile, the Rs 30.24-crore maiden public issue of Sunlite Recycling Industries was subscribed 262.14 times the IPO size, with investors purchasing 54.04 crore equity shares against the offer size of 20.61 lakh shares.
The Gujarat-based company, promoted by Prahladrai Ramdayal Heda, manufactures copper rods, wires, bars, and strips.
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Non-institutional investors led the way by subscribing 585.5 times the portion set aside for them, while retail investors subscribed 252.1 times their allotted quota, and qualified institutional buyers subscribed 108.8 times their reserved portion.
The book-built issue was comprised solely of a fresh issue. The price band for the issue was Rs 100-105 per share.
The IPO proceeds will be utilized for the installation of new plant and machinery, repaying debts, and general corporate purposes.
Both companies will finalize the basis of allotment of IPO shares by August 16, and the equity shares will be credited to the demat accounts of successful investors by August 19.
Trading in Positron Energy and Sunlite Recycling Industries shares will commence on the NSE Emerge platform, effective August 20.
Meanwhile, the Solve Plastic Products IPO closed its second day with 7.08 times subscription on the NSE, while the public issue of Broach Lifecare Hospital was subscribed 28.79 times. Both will close their initial public offerings on August 16.
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