Swastika Infra made a decent debut on the stock exchanges after the conclusion of its initial public offering as the stock was listed at a premium over the IPO's issue price on Wednesday, Sept. 30 at 10:00 am. Swastika Infra shares were listed at Rs 200 apiece on stock exchange NSE. This reflects a premium of nearly 8.11% over the IPO's upper price band of Rs 185 per share.
Incorporated in August 2019, Swastika Infra Ltd. provides end-to-end EPC services for power transmission and distribution networks. Its scope of work extends from sourcing and supplying equipment to the erection, installation, testing and commissioning of electrical infrastructure. The company works on underground cable networks, gas and air-insulated substations, rural and urban electrification projects and street lighting schemes.
Based on the latest GMP of Rs 7 and the upper price band of Rs 185, the estimated Swastika Infra IPO listing price is Rs 192 (Rs 185 + Rs 7) per share. This implies a potential listing premium of 3.78% over the issue price.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The initial public offering (IPO) of Swastika Infra was subscribed 7.60 times on the third and final day of bidding on Sept. 25. The IPO received bids for 4,81,51,260 shares against 63,35,001 offered.
Qualified Institutional Buyers (QIBs) subscribed their quota 3.22 times. The Non-Institutional Investors (NIIs) category was subscribed 18.50 times. Retail investors subscription stood at 5.39 times.
The Swastika Infra IPO comprises:
Fresh issue: 69.46 lakh equity shares worth Rs 128.50 crore
Offer for Sale (OFS): 17.50 lakh equity shares worth Rs 32.38 crore
The total issue size stands at Rs 160.88 crore. The price band was fixed at Rs 175–Rs 185 per share. The minimum bid size for retail investors is 81 shares, requiring an investment of Rs 14,985 at the upper end of the price band.
Srujan Alpha Capital Advisors LLP is the book-running lead manager and MUFG Intime India Ltd. is the registrar to the issue.
Swastika Infra IPO: Use Of Proceeds
The company plans to utilise the net proceeds from the fresh issue primarily towards:
Funding incremental working capital requirements of the company (Rs 90 crore).
General corporate purposes.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
