The initial public offering (IPO) of Ahmedabad-based Rajgor Castor Derivatives has attracted significant interest from investors on its second day of bidding, Wednesday. The company's shares have been bid for more than eight times the IPO size, with retail investors, high-networth individuals, and qualified institutional buyers oversubscribing their respective quotas.
Rajgor Castor Derivatives is aiming to raise ₹47.81 crore ($6.44 million) through the public issuance of 95.61 lakh shares at an upper price band of ₹47-₹50 per share. The IPO, set to close on Friday, October 20, includes a fresh issue worth ₹44.48 crore and an offer-for-sale by the company's promoters.
Prior to the IPO, the company raised ₹13.56 crore from seven anchor investors. Its shares are currently trading at a 20% premium in the grey market.
The funds raised through this IPO will be utilized for various purposes by the company. Rajgor Castor Derivatives plans to allocate ₹29.92 crore (INR100 crore = approx. USD12 million) of the net fresh issue proceeds for working capital requirements, while the remainder will be used for general corporate purposes.
Operating on a B2B model, Rajgor Castor Derivatives manufactures castor oil, castor oil cake, high protein oil cake at its Harij castor plant. The company is also involved in agro-commodity trading.
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