Arrowhead Seperation stock lists at 7% premium to IPO price on BSE SME

Arrowhead Seperation Engineering IPO was subscribed 94.79 times on November 20, the last day of bidding

Arrowhead Seperation Engineering stock listed at a 7.3 percent premium over the IPO price on November 28. The stock opened at Rs 250 against the issue price of Rs 233 on BSE SME. Soon after listing, the stock fell 5 percent from the opening price to Rs 237.5.

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Ahead of the listing, the stock was trading at a 10 percent premium to the issue price in the grey market, which is an unofficial ecosystem where shares start trading much before the allotment and until the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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Arrowhead Seperation Engineering IPO was subscribed 94.79 times on November 20, the last day of bidding. The retail portion was booked 142.3 times while non-institutional investors (NIIs) picked 46 times the allotted quota. The price for the issue, which opened on November 16, was fixed at Rs 233 per share.

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Through the public offer, the company raised Rs 13 crore. The offer was entirely a fresh issue of 5.58 lakh shares. The company will use the proceeds for the repayment of loans from NBFCs, and funding working capital requirements. The remaining amount will be used for general corporate purposes. Ajit Mundle and Jyoti Mundle are the promoters of the company.

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Aryaman Financial Services was the book-running lead manager, Cameo Corporate Services was the registrar and Aryaman Capital Markets was the market-maker for the issue. Arrowhead Seperation Engineering manufactures, trades and exports various types of dryers such as Vacuum Double Drum Dryer, Rotary Dryers, Single Drum Dryer, Double Drum Dryer, etc.

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