Sharp Chucks and Machines listed at a 13.8 percent premium over the IPO price on October 12. The stock opened at Rs 66 against the issue price of Rs 58 on the NSE SME.
Ahead of the listing, the grey market premium (GMP) jumped to Rs 19 from Rs 10 earlier, implying a listing price of Rs 77.
The issue received a decent response from investors as it was subscribed 54.2 times. Retail investors remained at the forefront, buying 63.69 times while high net-worth individuals bought 38.76 times.
Sharp Chucks raised Rs 16.84 crore via IPO. The offer had a fresh issue of 9.75 lakh shares worth Rs 5.66 crore and an offer-for-sale of 19.28 lakh shares, amounting to 11.19 crore. The price band for the issue which opened for subscription on September 29 and closed on October 5, was fixed at Rs 58.
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Fedex Securities was the book-running lead manager for the issue while Skyline Financial Services was the registrar. Nikunj Stock Brokers was the market maker.
The company will use the IPO proceeds to fund working capital requirements and general corporate purposes. Ajay Sikka and Gopika Sikka are the promoters of the company. Pre-issue, promoters and the promoter group held 68.66 percent and 11.62 percent and post issue their stake came down to 62.44 percent and 10.57 percent, respectively.
Sharp Chuck and Machines manufactures forging and graded casting machined components of tractors and other automobiles, power chucks, lathe chucks, drill chucks, and other machine tool accessories for tractors, automobiles, material handling & earth moving equipment, railways, defence, machine tools and others.
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