MUMBAI - Arrowhead Seperation Engineering Limited, a company known for manufacturing a range of dryers, has seen its initial public offering (IPO) subscribed 17.74 times on its second day. The IPO, which opened on Thursday and will run until Monday, November 20, has been particularly popular among retail investors who subscribed 30.83 times the shares available to them. Non-institutional investors followed with a subscription rate of 4.64 times.
The company's shares were offered at ₹233 each, with a face value of ₹10, making the issue price 23.3 times the face value. The minimum bid for investors is set at 600 shares, translating to a minimum investment of ₹1,39,800 for retail investors and ₹2,79,600 for high net worth individuals (HNIs) for two lots.
Despite the tepid interest from Qualified Institutional Buyers (QIBs), who only bid for 1,200 shares, the enthusiasm from other investor segments suggests confidence in the company's financial health and future prospects. This optimism is further bolstered by the grey market performance where Arrowhead's unlisted shares traded at a premium, indicating an anticipated listing gain of about 32.19%.
Arrowhead Seperation Engineering has been operating since 1991 and has reported a significant revenue surge of 98.91% to ₹21.71 crore. However, profits after tax grew by a modest 1.69%. The company is led by promoters Ajit and Jyoti Mundle and is recognized for its expertise in manufacturing various types of dryers including Paddle Dryers and Flaker Systems.
The share allotment is scheduled for Thursday, November 23, with the listing on the BSE SME platform set to take place on Wednesday, November 29. Aryaman Financial Services Limited is managing the IPO process, with Cameo Corporate Services Limited as the registrar and Aryaman Capital Markets as the market maker.
Investors are now looking forward to the conclusion of the subscription period on Monday and subsequent share allotment and listing dates to gauge the final market reception of Arrowhead Seperation Engineering's entry into the public markets.
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