The Rs 13.96-crore initial public offering (IPO) of Sahaj Fashions was subscribed 1.08 times by August 25 evening, the first day of bidding. Investors bought 50.28 lakh shares against the offer size of 46.52 lakh.
Retail investors bid for 33.08 lakh shares, which is 1.5 times the portion set aside for them, while high networth individuals sent in bids for 17.2 lakh shares, 78 percent of their quota.
The net issue is evenly reserved for retail and high-networth individuals at 50 percent each. Around 2.36 lakh shares are reserved for the market maker, and the remaining shares are considered as the net issue.
The textile company is looking to raise Rs 13.96 through the IPO, which comprises a fresh issue of 44.76 lakh shares (worth Rs 13.43 crore) and an offer-for-sale of 1.76 lakh shares by Ankur Shah, the non-promoter. The share price is fixed at Rs 30.
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Promoter and promoter group hold 97.95 percent stake in the company and the remaining 2.05 percent, or 1.78 lakh shares, is held by Shah.
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The Rajasthan-based fabric manufacturer will use the fresh issue proceeds to meet the working capital requirement of Rs 6.68 crore, repaying debts of Rs 4.2 crore and the remaining for general corporate purposes.
The fixed-price issue closes August 29 and the stock will list on the NSE SME on September 6.
The company, which has two units in Rajasthan, manufactures fabrics used for garments, home furnishings and industrial applications.
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Khambatta Securities is the merchant banker to the offer, while Bigshare Services is the registrar.
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