The initial public offering (IPO) of Nanta Tech Limited, a company specializing in audiovisual (AV) integration solutions, commenced its subscription period on Tuesday, December 23. However, the offering on the BSE SME platform witnessed tepid investor interest on its debut day.
Weak Opening Day Subscription
By 2:25 PM on the first day, the public issue had garnered an overall subscription of merely 0.07 times the shares on offer. The segment reserved for retail individual investors (RIIs) was booked 0.05 times, while the portion for non-institutional investors (NIIs) saw a subscription of 0.16 times. The quota for qualified institutional buyers (QIBs) remained unsubscribed at that time.
Grey Market Signals and Anchor Investment
Despite the slow start in the public subscription, activity in the unofficial grey market indicates a potential modest listing gain. Sources report the Grey Market Premium (GMP) for Nanta Tech shares stood at ₹12 on Tuesday morning. This suggests the stock could list at a premium of approximately 5.5% over the issue price on the BSE SME platform.
Ahead of the public opening, the company secured anchor investments. On December 22, Nanta Tech allotted 3.60 lakh shares to anchor investors at the upper end of the price band, ₹220 per share. This move raised ₹7.92 crore for the company prior to the IPO's public launch.
Nanta Tech IPO: Key Details at a Glance
The IPO is a fresh issue of 14,46,000 equity shares, aiming to raise ₹31.81 crore. There is no offer-for-sale (OFS) component in this issue.
Important Dates and Figures:
- IPO Dates: Open from Tuesday, December 23, to Friday, December 26.
- Price Band: Fixed at ₹209 to ₹220 per equity share.
- Lot Size: Retail investors can bid for a minimum of 1,200 shares and a maximum of the same.
- Allotment Date: Expected to be finalized on Monday, December 29.
- Listing Date: Proposed for Wednesday, December 31, on the BSE SME.
Use of Proceeds: The net funds raised will be utilized for setting up an experience centre and product display area, meeting working capital requirements, and general corporate purposes.
Reservation: The largest portion of the issue, 42.24% (6,10,800 shares), is reserved for QIBs. Retail investors are offered 33.10% (5,07,600 shares), and NIIs get 16.68% (2,41,200 shares).
Business Overview: Nanta Tech operates in the AV integration space, providing end-to-end solutions including system design, integration, management, and on-site support. The company is also involved in the supply of AV products, service robots, and software development services.
The book-running lead manager for the issue is Smart Horizon Capital Advisors Private Limited, and Bigshare Services Private Limited is the registrar.
