Subscription Trends on Day 2
The initial public offering (IPO) of Swastika Infra, a Rajasthan-based power project services provider, maintained steady traction on the second day of bidding. According to data from the National Stock Exchange (NSE), the issue received 1.24 times subscription as of 12:30 pm on September 24.
The total bids received amounted to 78,71,418 shares, compared to the 63,35,001 shares on offer. The demand was primarily driven by non-institutional investors (NII), whose portion was subscribed 2.12 times. The retail investor category followed with a subscription of 1.18 times. The IPO price band is fixed at Rs 175-185 per share, and the issue remains open for subscription until September 25.
Anchor Investor Participation
Prior to the public issue, Swastika Infra successfully raised Rs 48.26 crore from six anchor investors. The company allotted 26.08 lakh shares to these investors on September 22 at the upper end of the price band, Rs 185 per share.
The largest allocations in the anchor book went to Shine Star Build-Cap, Minerva Ventures, and Longthrive Capital VCC, with each entity investing Rs 10 crore for 5.4 lakh shares. Other participants included Krone Finstock, which acquired 4.46 lakh shares for Rs 8.25 crore, and Swyom India Alpha Fund and Asas Global Fund Incorporated VCC Sub Fund, each picking up 2.7 lakh shares for Rs 5 crore.
Use of Proceeds and Business Profile
The Rs 160.88-crore public issue consists of a fresh issue of shares worth approximately Rs 128.5 crore and an offer for sale (OFS) of up to 17.5 lakh shares by promoters and other shareholders.
Swastika Infra is an engineering, procurement, and construction (EPC) company specializing in power transmission and distribution (T&D) infrastructure. The firm provides turnkey services covering the conceptualisation, design, supply, installation, testing, and commissioning of power projects.
From the net proceeds of the fresh issue, the company intends to allocate Rs 90 crore towards incremental working capital requirements. The remaining funds will be utilized for general corporate purposes. Srujan Alpha Capital Advisors LLP and PhillipCapital (India) are serving as the merchant bankers for the issue.
Market Sentiment and Listing
As of September 24, Swastika Infra shares were trading at a grey market premium (GMP) of approximately Rs 6 per share, according to InvestorGain. At the upper end of the price band (Rs 185), this represents a premium of 3.24 percent over the issue price. It is important to note that GMP is an unofficial indicator and does not guarantee the actual listing price.
The shares are scheduled to list on both the BSE and NSE on September 30.