Airfloa Rail Technology Share Price: Stock Lists At 90% Premium; Hits Upper Circuit After Listing

Airfloa Rail Technology made a strong debut in the Indian stock market on Thursday. Shares of Airfloa Rail Technology listed at Rs 266 apiece on BSE SME, a premium of 90% over its issue price of Rs 140. The stock hit the upper circuit within minutes of listing.

After listing, the shares gained an additional 5%, surging a total of 99.5% from the issue price to reach the upper circuit of Rs 279.30 on the BSE SME platform.

Airfloa Rail Technology IPO had closed with a strong subscription on the last day of bidding on September 15.

Airfloa Rail Technology IPO was a book-building issue, comprising entirely a fresh issuance of 65 lakh shares. The IPO price band was fixed at Rs 133 to Rs 140 per share.

The Rs 91.1-crore SME issue was overall subscribed 301.52 times during the three-day bidding period from Sept. 11 to Sept. 15. The IPO attracted nearly 130.53 crore shares against 43.29 lakh shares on offer.  The Qualified Institutional Buyers’ (QIBs) category was booked nearly 215 times. The Non-Institutional Investors (NIIs) subscribed their segment nearly 350 times, while the retail portion was booked over 330 times.

The latest grey market premium for Airfloa Rail Technology IPO before listing was Rs 150 per share at 8:00 a.m. on September 18. Compared to the upper limit of the IPO price band of Rs 140 per share, the latest GMP signalled an estimated listing price of Rs 290 apiece. The latest GMP for Airfloa Rail Technology IPO indicated listing of shares at a premium of 107.14%.

However, since the end of the subscription, the GMP for the SME IPO dropped by Rs 25 from Rs 175 to Rs 150 in the last two days.

Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.

Use Of Proceeds

Airfloa Rail Technology has proposed to utilise the IPO funds for capital expenditure towards the purchase of machinery and equipment, repayment of a portion of outstanding debts and working capital needs. A portion of the IPO proceeds will also be used for general corporate purposes.

About

Airfloa Rail Technology Ltd., incorporated in December 1998, is a manufacturer of components for Indian Railways' rolling stock. It operates through production units like the Integral Coach Factory (ICF) and other coach factories. It also manufactures crucial parts for the aerospace and defence sectors. The company has made rolling stock components and managed interior projects for Sri Lankan DEMU, Mainline Coaches, Agra-Kanpur Metro, RRTS, Vistadome Coaches and Vande Bharat Express trains.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.