The maiden public issue of Sahaj Fashions continued to get good response from investors on August 29, the final day. The offer has received bids for 3.44 crore equity shares, which was 7.4 times higher compared to the IPO size of 46.52 lakh shares.
Retail investors remained aggressive, buying 11.7 times the reserved portion, while high networth individuals (non-institutional investors) have bid 3.88 times the allotted quota.
The garment and home furnishing fabric manufacturer launched the public issue on August 25 to raise Rs 13.96 crore, at a price of Rs 30 per share. The offer is entirely a fresh issue by the company.
The 46.52 lakh share offering included a reservation of 2.36 lakh shares for the market maker and the rest of the shares are divided equally between retail investors and high networth individuals, which comes to 22.08 lakh shares each.
Also read: Ratnaveer Precision Engineering IPO price band set at Rs 93-98 per share
Sahaj Fashions in consultation with the NSE will finalise the basis of allotment of IPO shares by September 1, as per the IPO schedule.
The listing of equity shares on the NSE Emerge will take place on September 6.
The Rajasthan-based polyester-and-cotton-polyster blended fabrics maker will utilise issue proceeds mainly for working capital requirements and repaying debts. The remaining amount will be used for general corporate purposes and offer expenses.
Also read: Shoora Designs with nearly 100% rally becomes third biggest gainer among SMEs on debut in August
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