Stallion India Fluorochemicals Ltd.'s initial public offering, a mainboard issue aiming to raise Rs 200 crore from the primary markets, entered its second day on Friday. It was subscribed 16.04 times so far.
On its day one, the IPO was subscribed 7.08 times, led by demand from non-institutional investors.
The IPO has been garnering strong interest from investors in the unlisted or grey market. Its GMP as of 9:31 a.m. was at Rs 42, according to InvestorGain. Based on this, the estimated listing price is Rs 132, a premium of 46.67% over the upper price band.
The IPO price band has been set at Rs 85 to Rs 90 apiece. Retail investors have to bid for at least 165 shares in a single lot, taking the minimum investment value in the category to Rs 14,850 for a single application.
Investors can place their bids for the IPO from Jan. 16 to Jan. 20. Share allotment of the issue is likely to be done on Jan. 21.
The mainboard IPO consists of a fresh issue of 1.79 crore shares worth Rs 160.7 crore and an offer for sale of 43 lakh shares totalling Rs 38.7 crore. The company has reserved up to 50% of the net offer size for qualified institutional buyers, 35% for retail investors and 15% of the shares on offer for non-institutional investors.
BigShare Services Pvt. is the registrar for the offer, whereas Sarthi Capital Advisors Pvt. is serving as the book-running lead manager for the issue.
Shares of Stallion India Fluorochemicals are likely to list on BSE and NSE on Jan. 23.
Issue Details
Issue opens: Jan. 16.
Issue closes: Jan. 20.
Issue price: Rs 85-90.
Fresh issue: Rs 160.7 crore
Offer for sale: Rs 38.7 crore
Total issue size: Rs 199.5 crore
Lot size: 165 shares.
Use Of Proceeds
In its red herring prospectus, Stallion India Fluorochemicals said that it would use the proceeds from its IPO to meet working capital requirements and fund capital expenditure expenses of two of its plants. The money will also be used for general corporate purposes.
Business
Stallion India Fluorochemicals Ltd. sells refrigerant and industrial gases, as well as related products. The company primarily debulks, blends and processes refrigerant and industrial gases, and sells pre-filled cans and small cylinders.
It operates four plants in Khalapur, Raigad (Maharashtra), Ghiloth, Alwar (Rajasthan), Manesar, Gurugram (Haryana) and Panvel, Raigad (Maharashtra).
Stallion India IPO Day 2 Subscription Status
The Stallion India Fluorochemicals IPO has been subscribed 16.04 times as of 12:21 p.m. on Friday.
Qualified institutional buyers: 0.05 times, or 5%.
Non-institutional investors: 29.39 times.
Retail investors: 19.45 times.
Stallion India IPO: Check GMP
The grey market premium of Stallion India's IPO is at Rs 42 as of 9:31 a.m., according to InvestorGain. This implies shares of the company will likely list at Rs 132 apiece, indicating a 46.67% premium to the upper end of the price band.
The GMP is not an official price quote for the stock and is based on speculation.
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.
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