Swastika Infra IPO allotment set for Sep 28 after 7.6‑times oversubscription
NEWZA Editorial Team•
⚡ Key Financial Takeaways
Overall subscription stood at 7.60 times; NII 18.5x, retail 5.39x, QIB 3.22x.
Allotment is scheduled for Sep 28, with listing on BSE and NSE on Sep 30.
Grey‑market premium of about 3.5% suggests an indicative price near Rs 191.5, above the Rs 185 upper band.
The Rs 160.88‑crore issue includes a Rs 128.5‑crore fresh issue and a Rs 32.38‑crore offer‑for‑sale.
Proceeds will fund Rs 90 crore of working‑capital needs for EPC projects and the remainder for general corporate purposes.
💡 Why It Matters
The robust subscription, especially from non‑institutional investors, signals strong confidence in Swastika Infra's growth prospects and the broader power‑infrastructure sector. The fresh capital will bolster the company's working‑capital position, enabling it to take on new EPC contracts without cash‑flow constraints. Market participants will watch the listing price to gauge whether the grey‑market premium materialises, which could set a benchmark for similar mid‑cap infrastructure IPOs.
Strong demand drives oversubscription Swastika Infra's initial public offering, sized at **Rs 160.88 crore**, attracted bids for **4,81,50,288 shares** against the **63,35,001 shares** on offer, according to NSE data. This translates to an **overall subscription of 7.60 times**. Among investor categories, **non‑institutional investors (NII)** were the most enthusiastic, subscribing **18.5 times**, while the **retail segment** saw a **5.39‑times** subscription and **qualified institutional buyers (QIBs)** subscribed **3.22 times**.
Allotment timeline and how to check status The final allocation of shares is slated for **September 28**. Investors can verify their allotment through the registrar **MUFG Intime India** or directly on the **BSE** and **NSE** websites using PAN, application number or DP ID. Refunds and credit of shares to demat accounts are expected on **September 29**, and the shares will begin trading on both exchanges on **September 30**.
Pricing and grey‑market signals The issue was priced in a band of **Rs 175‑185 per share** with a minimum lot of **81 shares**. A retail investor buying at the top of the band would need **Rs 14,985** for one lot. An unofficial grey‑market price (GMP) of **Rs 6.5** was reported on Sep 28, implying an indicative listing price of roughly **Rs 191.5**—about **3.5 %** above the upper price band. GMP figures are based on secondary‑market activity and do not guarantee the actual listing price.
Use of proceeds and anchor placement The IPO comprised a **fresh issue of Rs 128.5 crore** and an **offer‑for‑sale of up to 17.5 lakh shares** worth about **Rs 32.38 crore**. Prior to the public issue, the company secured **Rs 48.26 crore** from six anchor investors at the top of the band, allocating **26.08 lakh shares**. Notable anchor participants included **Shine Star Build‑Cap, Minerva Ventures, Longthrive Capital VCC** (each around **Rs 10 crore**) and **Krone Finstock** (approximately **Rs 8.25 crore**). The fresh‑issue proceeds will primarily fund **Rs 90 crore** for incremental working‑capital needs of its EPC projects, with the balance earmarked for general corporate purposes.
About Swastika Infra Swastika Infra is an engineering, procurement and construction (EPC) firm that specialises in power transmission and distribution (T&D) infrastructure across India. Its turnkey services cover design, supply, installation, testing and commissioning for utilities and other large‑scale power projects.
Lead managers and registrar **Srujan Alpha Capital Advisors LLP** and **PhillipCapital (India)** acted as book‑running lead managers, while **MUFG Intime India** served as the registrar for the issue.
🏛️ Background & Context
Swastika Infra operates in India's power transmission and distribution space, a segment that benefits from government initiatives to upgrade grid capacity and increase renewable integration. EPC firms in this arena often require substantial upfront funding for materials and equipment, making the working‑capital infusion from the IPO critical for project execution.
👁️ What To Watch Next
Investors should monitor the actual listing price on September 30 and the stock's early trading performance. Subsequent price movements will indicate whether the grey‑market premium was realistic. Additionally, any announcements on new project wins or utilisation of the raised funds will be key indicators of the company's post‑IPO trajectory.
