Aluminium long products maker Sampat Aluminium's IPO was fully subscribed on its first day of bidding, i.e. September 17, receiving 3.28 times the bid for shares on offer, with the grey market indicating a double-digit premium to the higher end of the price band.
The company is targetting to raise Rs 30.53 crore via initial public offering (IPO) of 25.44 lakh shares between September 17-19 at a price band of Rs 114-120 per share. Sampat Aluminium has already raised Rs 8.51 crore by issuing 7.09 lakh shares to anchor investors on September 16, a day before the offer opened for public.
The IPO attracted bids for 60.13 lakh shares on Wednesday against the size of 18.34 lakh shares through 1,230 applications. Non-institutional and retail investors were at the forefront, boosting the subscription numbers and bidding 5.6 times and 3.17 times their reserved portions, respectively. The portion set aside for qualified institutional buyers was booked 90 percent.
Grey market investors have given around 18 percent premium to Sampat Aluminium shares over the upper price band, the market observers said. The grey market is an unofficial market for trading in the IPO shares till their listing on the bourses.
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The aluminium long products like wires and rods manufacturer will spend Rs 23.3 crore of IPO proceeds for setting up a new manufacturing facility at Mehsana in Gujarat, and the remainder amount for general corporate purposes.
Currently, it has a manufacturing plant at Kalol in Gujarat with capacity of 8,400 MTPA.
Marwadi Chandarana Intermediaries Brokers is acting as the sole merchant banker for the Sampat Aluminium IPO.
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