Desco Infratech IPO Booked Over 80 Times; GMP Slides On Final Day - Check Details

The initial public offering of Desco Infratech Ltd., which opened for subscription on Monday, received a good response from the investors as the issue was booked 7.69 times on Tuesday. The SME IPO was fully subscribed on Day 1 and was booked 2.43 times, led by demand from non-institutional investors.

The infrastructure company aims to raise nearly Rs 31 crore through the offer.

Here's all you need to know about the Desco Infratech IPO as bidding enters its final day. Check the latest grey market premium, Day 3 subscription status, allotment and listing date, price band, use of IPO proceeds and more.

Desco Infratech IPO is a book-built issue valued at Rs 30.75 crore. It consists entirely of a fresh issue of 20.50 lakh shares offered at a price band of Rs 147 and Rs 150 apiece.

As per the company's RHP, of the 20,50,000 shares offered - 3,86,000 (18.83%) is allocated to qualified institutions, 2,94,000 (14.34%) is allocated to non-institutional investors, 6,86,000 (33.46%) is allocated to retail investors and 5,77,000 (28.15%) is allocated to anchor investors.

Retail investors can bid in the IPO with a minimum lot size of 1,000 shares equating to an investment of Rs 1.5 lakh. 

Smart Horizon Capital Advisors Pvt. is the book-running lead manager for the IPO, while Bigshare Services Pvt Ltd serves as the registrar. Rikhav Securities Ltd. is the market maker for Desco Infratech IPO.

The IPO of Desco Infratech has been subscribed 83.75 times as of 5:24 pm on Wednesday

• Qualified Institutions: 28.76 times

• Non-Institutional Buyers: 233.26 times

• Retail Investors: 50.62 times

Subscription status will be updated at regular intervals

The latest grey market premium (GMP) for the Desco Infratech IPO was Rs 12 on Wednesday. Given the upper end of the IPO’s price band of Rs 150, the estimated listing price is expected to be Rs 168, factoring in the current GMP. This suggests a potential gain of around 12% per share upon listing.

Note: Please note that GMP is not an official data source, and is based on speculation.

The allotment for the Desco Infratech IPO is expected to be finalised on Thursday, Mar. 27. Shares of Desco Infratech will be listed on BSE SME with on Tuesday, Apr. 1. Investors who do not receive an allotment will have their refunds initiated on Mar. 28. Those who receive successful allotment will see their demat accounts credited with the subscribed shares on the same day. 

Desco Infratech plans to allocate a portion of the net proceeds from the IPO toward capital expenditure for establishing its corporate office in Surat, Gujarat. The company intends to invest in buying new machinery to improve operational capacity. A part of the proceeds will be used to meet the company’s working capital requirements. The remaining funds will be directed toward general corporate purposes.

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.