IPO Listing: GMP Signals 43% Gains For Adroit Subscribers, Modest Returns For ArMee, Swastika, Elevate Eye

Four IPOs are set to make their debut on the stock exchanges on Wednesday, with Adroit Industries emerging as the standout listing candidate amid strong investor demand. The other three companies, ArMee Infotech, Swastika Infra and Elevate Campuses, are expected to see relatively muted debuts, with their grey market premiums (GMPs) pointing to listing gains of around 2% or less.

All four IPOs were open for subscription from Sept. 23 to Sept. 25.

Adroit Industries IPO

Adroit Industries is expected to command the strongest listing premium among the four IPOs. Its GMP stands at Rs 58, according to IPO Watch, implying a potential listing price of around Rs 192 against the issue price of Rs 134. At this level, the stock could list at a premium of around 43%.

Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay

The Rs 151-crore IPO received a massive response, with the issue subscribed 176.85 times. Investors placed bids for 1,392.29 million shares against 7.87 million shares on offer. The NII portion was subscribed 332.35 times, followed by the QIB category at 195.04 times and the retail portion at 99.81 times.

The IPO comprised a fresh issue of Rs 132.62 crore and an offer for sale of Rs 18.09 crore. Adroit Industries manufactures and supplies propeller shafts and torque-transmission components used in driveline systems. The company plans to use the fresh issue proceeds towards capital expenditure for machinery and equipment at its Dewas facility and investments in its subsidiary.

The IPO was priced in the Rs 126-134 range, with a lot size of 111 shares.

Swastika Infra IPO

Swastika Infra is also expected to make a positive debut, although the premium indicated by the grey market is significantly lower than Adroit Industries. The IPO's GMP stands at Rs 6, implying a potential listing price of Rs 191 against the issue price of Rs 185, translating into a premium of around 3.24%.

The Rs 161-crore IPO was subscribed 7.60 times, receiving bids for 48.15 million shares against 6.33 million shares on offer. The NII portion was subscribed 18.50 times, while the QIB and retail portions were subscribed 3.22 times and 5.39 times, respectively.

ALSO READ: EverBrands India IPO: Subway Master Franchisee Files DRHP For Rs 600-Crore Public Issue

Swastika Infra is an EPC company focused on power transmission and distribution infrastructure projects.

The issue comprised a fresh issue of Rs 128.50 crore and an OFS of Rs 32.38 crore. Proceeds from the fresh issue will be used primarily to fund working capital requirements and general corporate purposes. The IPO was priced between Rs 175 and Rs 185 per share, with a lot size of 81 shares.

Elevate Campuses IPO

Elevate Campuses is expected to see a relatively subdued listing. Its GMP of Rs 6 indicates a potential listing price of Rs 368 compared with the issue price of Rs 362, implying a premium of around 1.6%. The education infrastructure company's IPO received 1.79 times subscription, with bids for 60.28 million shares against 33.67 million shares on offer.

The QIB category was subscribed 2.52 times, while the NII and retail portions were subscribed 0.84 times and 1.01 times, respectively. Elevate Campuses owns, operates and manages on-campus student accommodation for higher education institutions and also owns K-12 school assets.

The Rs 2,100-crore IPO was entirely a fresh issue. The company plans to use the proceeds to acquire K-12 entities and campuses, repay debt, fund acquisitions and meet general corporate requirements. The IPO was priced in the Rs 343-362 range.

ArMee Infotech IPO

ArMee Infotech is also expected to have a largely flat listing, with its GMP at Rs 6 indicating a potential debut price of around Rs 381 against the issue price of Rs 375. This translates into a potential listing premium of around 1.6%. The Rs 300-crore IPO was subscribed 2.44 times, receiving bids for 18.15 million shares against 7.4 million shares on offer.

The QIB portion was subscribed 2.99 times, while the NII and retail categories received 2.09 times and 2.47 times subscription, respectively.

ArMee Infotech is an IT infrastructure solutions and managed services company. The IPO was entirely a fresh issue, with proceeds earmarked for expansion through new government and PSU projects, working capital requirements, repayment of certain borrowings and general corporate purposes. The IPO was priced between Rs 350 and Rs 375 per share.

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.