SME Update: Danish Power, United Heat Transfer IPOs see robust subscription; OBSC Perfection issue gets 15.5x bids

IPO

In the SME segment, three public issues, namely Danish Power, United Heat Transfer, and OBSC Perfection, closed for subscription on October 24, while the Usha Financial Services IPO was fully subscribed on its first day of bidding. All of them are from the NSE Emerge.

Amongst them, Danish Power, the biggest-ever SME IPO, recorded 117.9 times subscription with investors buying 44.14 crore equity shares as against the offer size of 37.44 lakh shares, the subscription data on the exchanges showed.

The Jaipur-based transformers maker opened its 52.08 lakh shares initial share sale on October 22 to raise Rs 197.9 crore at the upper end of price band of Rs 360-380 per share.

Danish Power already raised Rs 55.63 crore from 19 anchor investors on October 21, a day before the IPO opening. Bharat Venture Opportunities Fund, Carnelian Structural Shift Fund, Finavenue Capital Trust, JM Financial Products, Niveshaay Hedgehogs Fund, Tattvam AIF Trust, Valuequest India, and Visionary Value Fund were some of the anchor investors.

With two manufacturing plants in Jaipur, the company supplies transformers to several power and power related companies including Tata Power Solar System, Waaree Renewable Technologies, Jakson Green, ABB India, and Torrent Power.

The initial public offering of United Heat Transfer was subscribed 77.9 times on Thursday, with investors bidding for 28.43 crore shares as against the issue size of 36.5 lakh shares.

The heat exchangers, pressure vessels, and process flow skids maker targets to mobilise Rs 30 crore through its IPO, which comprises solely fresh issue. The price band for the offer was Rs 56-59 per share.

The Nashik-based company's products find applications in petrol and diesel engines, maritime vessels, mining trucks, and heavy machinery segments.

Precision metal components manufacturer OBSC Perfection recorded 15.46 times subscription as investors bought 7.3 crore equity shares against the IPO size of 47.23 lakh shares. The price band for the issue was 95-100 per share.

The company, which primarily caters to original equipment manufacturers that ultimately supply various components and parts to top automotive manufacturing companies of India, opened its public issue on October 22 to raise Rs 66.02 crore which will be mainly used for purchase of machinery for the existing manufacturing facilities, and working capital requirements.

Non-banking finance company Usha Financial Services opened its Rs 98.5-crore maiden public issue, which closed its first day of bidding with 1.24 times subscription. Investors pumped in money for 52.14 lakh shares as against the offer size of 41.99 lakh shares. The issue, which has a price band of Rs 160-168 per share, will close next week on October 28.

Danish Power, United Heat Transfer, and OBSC Perfection will finalise the basis of allotment of their IPO shares by October 25. They will credit IPO shares to the demat accounts of successful investors by October 28.

Investors can start trading in equity shares of these companies on the NSE Emerge, effective October 29.

Amongst these four, Danish Power IPO shares have been attracting strong interest in the grey market, trading at around 70-75 percent premium over the upper price band, while United Heat Transfer, and OBSC Perfection saw 30-40 percent and 15-20 percent premium, the market observers said.