Ashish Kacholia-backed HVAC systems maker Shree Refrigerations' initial share sale saw a strong response from investors with a 174.24 times subscription on July 29, the final day of bidding.
The Rs 117-crore SME public issue which opened on July 25 received bids for 116.96 crore equity shares against the offer size of 67.13 lakh shares through 3.08 lakh applications. Retail investors topped the list in terms of subscription response, bidding 195.13 times their allotted quota of shares. The portions set aside for non-institutional investors and qualified institutional buyers were subscribed 145.02 times and 167.32 times, respectively.
From its facility in Maharashtra's Karad region, Shree Refrigerations makes chillers, refrigeration and air conditioning appliances and other parts of heating, ventilation and air conditioning (HVAC) industry. The company also manufactures marine chillers for the Indian Navy.
The company will finalise IPO share allotment by July 30. Shree Refrigerations shares will be available for trading on the BSE SME effective August 1.
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The Shree Refrigerations IPO shares traded around 70 percent premium in the grey market on July 29, market observers noted.
The company is raising Rs 117.33 crore via initial public offering of 93.86 lakh shares at the upper end of price band of Rs 119-125 per share. The IPO comprised of fresh issue of 75.61 lakh shares, and an offer-for-sale of 18.25 lakh shares by Maharashtra Defence and Aerospace venture fund through its investment manager namely IDBI Capital Markets & Securities.
Of the fresh issue proceeds, Rs 70 crore will be utilised for working capital requirements, and the remainder funds for general corporate purposes. The offer-for-sale money will go to the selling shareholder.
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