Investors seem to be have a strong view on the public issue of Ratnaveer Precision Engineering as they have picked up 110.79 crore equity shares, leading to a 93.99 times subscription compared to an offer size of 1.17 crore shares on September 6, the final day of bidding.
High net-worth individuals remained aggressive in the bidding for the offer, buying 135.21 times the allotted quota, which is 15 percent of the issue size. Retail investors have bid for shares 54.01 times the portion set for them and qualified institutional buyers booked 133.05 times the share set aside for them. The retail pie was 35 percent and the QIB slice was 50 percent of the issue.
The IPO by the stainless steel-based products maker has been getting healthy response from the day one of bidding, September 4, and subscribed 21.8 times on the second day. The price band for the offer is set at Rs 93-98 per share.
The Gujarat-based company intends to raise Rs 165.03 crore from public at the upper price band. The offer comprises a fresh issues worth Rs 135.24 crore and an offer-for-sale of Rs 29.79 crore by promoter Vijay Ramanlal Sanghavi.
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The fresh issue proceeds will be utilised for working capital requirements and the general corporate purposes.
Ratnaveer Precision Engineering, which caters to several industries including automotive, power, oil and gas, pharmaceuticals, electromechanics, building and construction, and electrical appliances, raised Rs 49.5 crore from anchor investors on September 1, including Societe Generale, Coeus Global Opportunities Fund, Leading Light Fund VCC - The Triumph Fund, Sixteenth Street Asian Gems Fund, and Saint Capital Fund.
The basis of allotment of the IPO shares will be finalised by the company in consultation with the NSE by September 11, and equity shares will be transferred to the demat accounts of eligible investors by September 13. The refunds will be credited to bank accounts of unsuccessful investors by September 12.
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The trading in equity shares will commence on September 14.
The Ratnaveer shares attracted around 50-60 percent premium over the upper price band, in the grey market, an unofficial platform for trading in IPO shares till the listing, analysts said on anonymity.
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