The maiden public issue of Sahaj Fashions is witnessing a good response from investors. The issue was subscribed 3.44 times, receiving bids for 1.6 crore shares against the offer size of 46.52 lakh shares on August 28, the second day of bidding.
Retail investors continued to provide strong support to the offer, buying 6.03 times the allotted quota, while the portion set aside for high networth individuals was subscribed 1.2 times.
The company has reserved 2.36 lakh shares for the market maker, of the 46.52 lakh shares issue. With this, the net issue is 44.16 lakh shares, which is divided equally between retail and high networth individuals.
The garment fabric manufacturer is planning to raise Rs 13.96 crore equity shares via its fixed price issue, at a price of Rs 30 per share.
The 46.52 lakh shares offer comprises a fresh issue of 44.76 lakh shares (Rs 13.43 crore) and an offer-for-sale of 1.76 lakh shares (Rs 0.53 crore) by non-promoter selling shareholder Ankur Shah.
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The company will utilise fresh issue proceeds mainly for working capital requirements and repaying debts. The remaining funds are for general corporate purposes and issue expenses.
The offer will close on August 29.
With a manufacturing base in Rajasthan, Sahaj Fashions claims to have the expertise in manufacturing primarily cotton suiting fabric and cotton shirting fabric apart from polyester-based and cotton-polyester blended fabrics. It also manufactures cotton yarn-dyed fabrics.
Also read: Basilic Fly Studio seeks to raise Rs 66.35 crore via IPO, price band set at Rs 92-97 per share
Its equity shares will be listed on the SME Platform of NSE.
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