The initial public offering (IPO) of Thejo Engineering, the first company to be listed on National Stock Exchange’s SME platform, was subscribed 63 per cent on the second day of the issue today.
The Rs 21-crore IPO, received bids for more than 2.97 lakh shares against 4.72 lakh shares on offer, as per the National Stock Exchange (NSE) data.
The qualified institutional buyers (QIB) category was oversubscribed 1.01 times, while the retail individual investors’ portion was subscribed 0.27 times, and non institutional investors portion 0.28 times.
The Chennai-based company has fixed a price band of Rs 402-430 per equity share of Rs 10 each.
The issue closes tomorrow.
If the IPO is successful, the firm would become the first company to be listed on the small and medium enterprises (SME) exchange platform of the National Stock Exchange, EMERGE.
IDBI Capital Market Services Ltd is the sole book running lead manager for the issue.
Thejo Engineering is an engineering solutions provider for bulk material handling, mineral processing and corrosion protection to the core sector industries such as mining, power, steel, cement, ports and fertilisers, among others.
The company proposes to invest the net proceeds of the issue to set up a poly-urethane unit with investment of Rs 68.28 lakh, expansion of the existing facility with an investment of Rs 6.87 crore, setting up R&D unit with a total outlay of Rs 2.83 crore and setting up a lining plant with a total cost of Rs 1.69 crore, all at Chennai.
It also proposes to invest Rs 6.42 crore in Thejo Australia Pty Ltd, its Australian subsidiary.
CRISIL Research has assigned the SME fundamental grade of SME 5/5 to Thejo’s IPO, indicating that the fundamentals of the company are excellent compared to other SMEs in India.