Arvind and Company Shipping Agencies' initial public offering (IPO) has concluded with a remarkable oversubscription of 171.60 times on Monday. Retail and high net worth investors showed significant interest, subscribing 205 and 156.8 times their respective quotas.
The company has set an ambitious target to raise Rs. 14.74 crore ($1.96 million) through the issuance of 3.276 million shares priced at Rs 45 each ($1 = Rs 83.26). The funds raised are earmarked for several key areas including a capital expenditure of Rs 11.02 crore ($1.47 million) for barge acquisition, Rs 1.82 crore ($242,000) for corporate needs, and Rs 1.9 crore ($253,000) for IPO-related expenses.
Arvind and Company's main revenue streams include barge chartering, which contributed Rs 1.96 crore ($261,000) to their earnings, and hospitality services from Hotel Millennium Plaza and Hotel 999, generating an additional Rs 0.37 crore ($49,000). The company reported a profit of Rs 3.47 crore ($463,000) in FY23 and revenue of Rs 2.33 crore ($311,000) in FY24.
Following the successful IPO, the company's shares are scheduled to commence trading on NSE Emerge from October 25 with a grey market premium of around 40%. This robust performance reflects investor confidence in Arvind and Company's business model and future prospects.
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