The Initial Public Offering (IPO) of Ratnaveer Precision Engineering Limited, a company engaged in stainless steel washer manufacturing and supply, closed on Wednesday with shares being subscribed an overwhelming 93.99 times. The IPO opened on Monday, September 4, and saw consistent participation over the three-day period.
According to market data, the share sale received bids for 110.76 crore (1 crore = 10 million) shares against 1.17 crore shares on offer. The portion for non-institutional investors was subscribed 135.20 times and that of Qualified Institutional Buyers (QIBs) received 133.05 times subscription. The quota for Retail Individual Investors (RIIs) got subscribed 53.95 times.
The IPO is made up of a fresh issue of 13,800,000 shares that totals to ₹135.24 crore (₹1 crore = $120,250) and an offer for sale (OFS) portion consisting of 3,040,000 shares of ₹10 ($1 = ₹83.1), which aggregates to ₹29.79 crore sold by promoter selling shareholder Vijay Ramanlal Sanghavi. The total issue size is ₹165.03 crores.
The net proceeds from the fresh issue will be utilized to fund working capital requirements of the company, and general corporate purposes.
On the grey market, Ratnaveer Precision's shares were trading at a premium of ₹60, indicating investors' readiness to pay more than the issue price. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ratnaveer Precision share price is ₹158 apiece, which is 61.22% higher than the IPO price of ₹98.
Successful bidders are likely to be allotted shares on September 11, Monday at any time of the day. The equity shares are proposed to be listed on September 14, Thursday.
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