For how much will you get the share?
For this IPO, the price band of Rs 2 face value share has been fixed at Rs 555 to Rs 585. In the OFS, both Srinivasa Gopalan Rangarajan and Rekha Murthy Rangarajan will sell up to Rs 19.67 lakh separately and Sudhir Nathan will sell up to 75,000 shares. The same GK Vasundhara will sell up to 4.15 lakh shares and other existing shareholders up to 15.28 lakh equity shares. The company expects to raise Rs 588.22 crore from the upper level of its IPO price range.
who shares how much
The company will use the proceeds from the IPO to pay off debt, finance working capital and expand its existing facilities, apart from general corporate purposes. Half of the issue is reserved for qualified institutional investors. The same 35 percent is reserved for retail investors and the remaining 15 percent for non-institutional investors. There will be 25 shares in one lot. Retail investors can invest a minimum of Rs 14,625 for a lot. The maximum investment will be Rs 1,90,125 for 13 lots.
financial position of the company
The company achieved a record growth of 71% in its revenues between FY 2019 and 2021. This is the highest among the defense and aerospace companies of the country. The company achieved revenue of Rs 131 crore in the financial year 2019. It grew by 19.1 per cent to Rs 156 crore in FY20. The company’s revenue grew 43.5 per cent to Rs 224 crore in FY21.
Nearly 100% GMP
Its premium is running at Rs 550 in the gray market. This shows how much investors are interested in it. The company was established in the year 1985 and has emerged as a leading solution provider for the Defense Products Industry in the country. It is one of the few companies providing solutions related to defense and aerospace electronics. The allotment of shares will take place on December 21. The shares will reach the demat of successful investors on December 23. The company’s shares will be listed on the stock exchanges on December 24, 2021.
Raised Rs 176 crore from anchor investors
Before the IPO, the company raised Rs 176 crore from anchor investors. The company said in a BSE filing that it has allotted 30.16 lakh shares to anchor investors at a price of Rs 585 per share. Participating domestic mutual funds include HDFC Mutual Fund (MF), ICICI Prudential MF, Axis MF, Kotak MF, Aditya Birla Sun Life MF and Tata MF. Also HDFC Life Insurance Company, Tata AIA Life Insurance Co Ltd, Nomura Funds, White Oak Capital and Enam also participated in it.
What is a brokerage
Most brokerages have advised investors to subscribe to it for listing gains. The reason for this is that the company has a strong order of Rs 589 crore. The company is profitable since last 3 years. Due to its special capabilities, it is part of important defense projects. This is the reason why its premium in the gray market is increasing continuously. On listing, it can earn big money for the investors.
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