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Arrowhead Seperation Engineering IPO draws massive interest, stock dips post-listing

EditorPollock Mondal
Published 11/28/2023, 02:32 AM
© Reuters.

INDIA - Arrowhead Seperation Engineering, a manufacturing and export company specializing in dryers, recently went public with an initial public offering (IPO) that attracted substantial investor interest. The IPO, which aimed to raise Rs 13 crore, was oversubscribed by a staggering 95 times, with retail investors alone subscribing 142 times the shares on offer. Non-Institutional Investors (NIIs) also showed keen interest, seeking out their allotment 46 times over.

Despite a strong opening on the BSE SME platform today with a premium of Rs 250, Arrowhead's stock experienced a slight dip, settling at Rs 237.5 after listing. This slight decline from its initial gains was in line with the anticipations set by grey market trends, which had indicated a robust interest in the company's shares. Nevertheless, the stock's performance still remained above the issue price, suggesting a positive market reception overall.

The funds raised from the IPO are earmarked for critical financial moves, including repaying loans and bolstering the working capital necessary to sustain the company's operations. Arrowhead's product portfolio includes the Vacuum Double Drum Dryer and Rotary Dryers, which are central to its manufacturing and export business.

Ajit and Jyoti Mundle, the founders of Arrowhead Seperation Engineering, have overseen the company's journey to the public markets. The IPO was managed by Aryaman Financial Services, with Cameo Corporate Services acting as the registrar to the offer and Aryaman Capital Markets serving as the market-maker. The company's successful transition into a publicly-traded entity marks a significant milestone in its growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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