Spunweb Nonwoven IPO Day 2: Check Latest GMP, Subscription Status, Price Band And Other Key Details

Spunweb Nonwoven IPO continued to witness a strong demand on the second day of bidding on Tuesday, July 15. The NSE SME IPO was overall subscribed more than 34 times by 3:40 p.m., driven by retail investors.  

The initial public offering of the non-woven fabrics manufacturer attracted bids for more than 14.48 crore shares against 42.21 lakh shares on offer, leading to a subscription of 34.31 times.

The Qualified Institutional Buyers (QIBs) submitted bids for 19,92,000 shares against 12,06,000 shares set aside for them, resulting in a subscription of 1.65 times. The Non-Institutional Investors (NIIs) booked the issue 36.94 times. The retail portion of the IPO was subscribed 51.85 times, as per Chittorgarh data.

The IPO opened for subscription on July 14. Investors who want to bid for shares in the IPO can check the following details before applying for shares.

The grey market premium (GMP) for the Spunweb Nonwoven IPO stood at Rs 42 as of 1:30 p.m. on July 15, according to InvestorGain. The latest GMP indicates a listing price of Rs 138 apiece at a premium of 43.75% over the upper limit of the price band.

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

Spunweb Nonwoven IPO: Key Details

The Spunweb Nonwoven IPO is a book-building issue aimed at raising Rs 60.98 crore from the primary market. The SME IPO comprises only a fresh issuance of 63.52 lakh shares.

The price band for the IPO has been fixed between Rs 90 to Rs 96 per share.

Retail investors can invest by bidding for two lots comprising 2,400 shares, requiring an investment of Rs 2,16,000. High Net-Worth Individuals (HNIs) need to bid for at least three lots, amounting to an investment of Rs 3,45,600.

The IPO subscription is open till July 16. Spunweb Nonwoven IPO share allotment status is scheduled to be finalised on July 17. The company will transfer shares to the Demat accounts of the successful bidders on July 18 and refunds for non-allottees will also be initiated on the same day. 

Shares of Spunweb Nonwoven Ltd. are proposed to be listed on the NSE SME platform on July 21.

Vivro Financial Services Pvt. is the book-running lead manager of the Spunweb Nonwoven IPO. MUFG Intime India Pvt. is the registrar and Rikhav Securities Ltd. is the market maker for the issue.

Use Of Proceeds

The company has proposed to use proceeds from the IPO to fund working capital requirements and repay debt.  The remaining portion of the IPO funds will be used for general corporate purposes.

The company manufactures and supplies non-woven fabrics, which are used for applications like doormats, bags, carpets and tarpaulins. Spunweb Nonwoven caters to industries such as healthcare, automotive and consumer goods, among others. 

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.