The initial public offering (IPO) of Sundrex Oil and Grease Limited opened for subscription on Friday, December 22, attracting a steady flow of investor interest on its first day. The public issue, aiming to raise capital for working capital needs, witnessed a subscription level of 0.41 times the offered shares by 2:00 PM on the opening day.
IPO Subscription Status and Investor Breakdown
According to the latest data available from the stock exchanges, the IPO received bids for 14.68 lakh shares against the total issue size of 35.61 lakh shares. A closer look at the subscription data reveals varied interest across investor categories. The portion reserved for retail individual investors (RIIs) saw the strongest demand, being subscribed 0.60 times. The non-institutional investor (NII) category, which includes high-net-worth individuals, was subscribed 0.15 times. Notably, the Qualified Institutional Buyer (QIB) category had not yet opened for bidding at the time of this data release.
Complete Details of the Sundrex Oil Public Issue
The SME IPO is open for subscription from December 22 to December 24, 2023. The company has set a price band of ₹81 to ₹86 per equity share. Through this fresh issue of 38 lakh shares, Sundrex Oil intends to raise approximately ₹32.25 crore. The net proceeds will be utilized to meet the company's working capital requirements and for general corporate purposes.
For retail investors, the minimum application size is one lot of 3200 shares, translating to a minimum investment of roughly ₹2.75 lakh at the upper end of the price band. The allocation is structured with reservations of 75,200 shares for QIBs, 1,396,800 shares for NIIs, and 2,089,600 shares for retail investors.
Important Dates and Listing Information
The final allotment of shares is scheduled for Friday, December 26. Successful applicants can expect the shares to be credited to their demat accounts by Monday, December 29. Unsuccessful bidders will receive their refunds on the same day. The shares of Sundrex Oil are proposed to be listed on the BSE SME platform on Tuesday, December 30, 2023.
Market sentiment, as indicated by the grey market premium (GMP), suggests a positive listing. The GMP was reported at ₹17, which hints at a potential listing price of around ₹104 per share. This would represent a 20% gain over the upper price band of ₹86.
About the Company and Key Advisors
Sundrex Oil is a manufacturer and wholesaler of a diverse range of products including lubricants and greases for industrial and automotive use. The company operates primarily in the business-to-business (B2B) segment, which contributes a dominant 99% of its total revenue. The remaining 1% comes from its business-to-consumer (B2C) operations.
The book-running lead manager for the issue is Affinity Global Capital Market Pvt. Ltd., while Cameo Corporate Services Ltd. is acting as the registrar. The market maker for the company is Sunflower Broking Pvt. Ltd.
Disclaimer: This article is for informational purposes only. Investors are strongly advised to consult with certified financial experts and conduct their own independent research before making any investment decisions.
