The retail share saw huge apps and was fully subscribed within 45 minutes of the subscription opening. Of the 32,83,580 shares on offer for retail investors, the issue had received a request for 96,45,460 shares, which means a subscription of 2.94 times.
The quota for non-institutional investors or high net worth investors was subscribed 0.54 times, while the QIB quota had received very few applications.
The Vadodara-based company plans to raise Rs 318 crore, of which it already raised Rs 95.40 crore by allocating shares of 28.06 lakh to anchor investors at Rs 340 per share last week.
The company is offering a new issue of equity shares, totaling up to Rs 165 crore and offering the sale of up to 45,00,000 equity shares, to be sold in the price range of Rs 338-340.
On the gray market, the company’s shares were trading at a premium of Rs 275 per share, or 81% more than the price band set for the IPO.
Analysts said the issue calls for an economic valuation of 25.5 times FY20 earnings per share and that the company could benefit from a shift in demand from China. But the high concentration of clients, the criminal process against a promoter and the limited portfolio are risks for the company.
Most of the brokers had ‘underwriting’ ratings on the shares. Angel Broking said the company’s return rates and margins are better than most of its peers, adding that the company is undervalued compared to its peers and “there is a lot of value left in the table.”
“As we are positive about the future prospects for the industry and the company, we recommend issuing ‘Subscription’ for the long term, as well as for trading gains,” he said.
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