Saatvik Green Energy IPO GMP In Focus Ahead Of Final Day Of Subscription; Check Allotment Date And More

The initial public offering (IPO) of Saatvik Green Energy Ltd., which began on September 19, is scheduled to close on September 23. The company, a manufacturer of solar photovoltaic modules and provider of integrated solar project solutions, has set the price band between Rs 442 and Rs 465 per equity share.

According to BSE, the mainboard issue was fully subscribed on Day 2, after witnessing muted demand on Day 1.

With just one day left before the subscription closes, the grey market premium (GMP) for the Saatvik Green Energy IPO is in focus today. According to the current trends, the GMP for the mainboard issue has declined since the IPO opened for subscription on September 19.

Here are all the latest details.

The grey market premium (GMP) for Saatvik Green Energy IPO was Rs 9 as of 9:00 a.m. on September 23. With the upper end of the price band set at Rs 465, the IPO’s estimated listing price is Rs 474, indicating an expected per-share gain of 1.94%.

The grey market premium for the mainboard issue was Rs 32 on Day 1, before sliding to Rs 9 on Day 2. The highest GMP recorded for the IPO was Rs 65, a day before the IPO was launched. This means the unlisted shares of Saatvik Green Energy Ltd. were trading as high as Rs 530 per share, an estimated listing gain of around 14%.

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

The Saatvik Green Energy IPO is a book-built issue of Rs 900 crore, comprising a fresh issue of 1.51 crore shares of Rs 700.00 crore and an offer-for-sale of 43 lakh shares amounting to Rs 200 crore.

The Saatvik Green Energy IPO has a lot size of 32 shares per application, requiring a minimum retail investment of Rs 14,880. For non-institutional investors, the investment is 14 lots (448 shares) amounting to Rs 2,08,320, while for big institutional investors, it is 68 lots (2,176 shares) totalling Rs 10,11,840.

The issue has been oversubscribed 1.05 times on Monday, receiving bids for 1,55,04,416 shares against 1,42,71,970 shares on offer. Breaking it down by category, Non-Institutional Investors (NIIs) oversubscribed their portion 1.38 times, retail investors 1.56 times while Qualified Institutional Buyers (QIBs) showed minimal subscription at 0.01 times.

Dam Capital Advisors Ltd. is the book running lead manager for the IPO, while Kfin Technologies Ltd. is the registrar for the issue.

After the IPO closes for bidding on September 23, the tentative share allotment for Saatvik Green Energy is expected on September 24. Refunds and credit of shares to investors’ demat accounts are likely on September 25. Thereafter, the IPO is tentatively scheduled to list on the BSE and NSE on September 26.

Incorporated in 2015, Saatvik Green Energy Ltd. is engaged in the manufacturing of solar modules and provides engineering, procurement and construction (EPC) services. The company offers a wide range of solar module products. Manufacturing operations began in 2016. Saatvik Green Energy operates two module manufacturing facilities in Ambala, Haryana.

Saatvik Green Energy IPO plans to use the funds from the issue for several purposes. The company will prepay or repay some of its existing borrowings. It also intends to invest in its wholly owned subsidiary, Saatvik Solar Industries Pvt. Ltd., to repay or prepay the subsidiary’s borrowings. Part of the funds will be used to set up a 4 GW solar PV module manufacturing facility in Gopalpur, Odisha. The remaining proceeds will be used for 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.