Propeller shaft manufacturer Adroit Industries’ initial public offering of Rs 151 crore was fully subscribed on the first day of its bidding. Overall, the issue was booked 5.18 times, receiving bids for 4.07 crore shares against its offer of 78.72 lakh shares.
The retail portion and NII segment led participation, as both segments were heavily oversubscribed, while the QIBs segment saw minimal participation on day one.
The company has fixed its share price band at Rs 126 to Rs 134, and investors can bid in lots of 111 shares and multiples thereafter. The issue comprises a fresh portion of Rs 132.62 crore, and an offer for sale component of Rs 18.09 crore.
On its first day of bidding, the Adroit Industries IPO received 2.15 lakh applications aggregating to Rs 550.69 crore. A day before public bidding, the company raised Rs 45.21 crore through its anchor book.
As per trackers, the grey market premium of Adroit Industries IPO is showing a positive trend as the company’s stock is trading at a GMP of Rs 35 or 26%, in the unlisted markets. This reflects a likely listing price of Rs 169, based on the upper end of the price band, and translates into gains of Rs 3,885 per lot.
However, readers must know that GMP is not an official metric to determine the listing price and varies based on market mood and sentiment.
Giving the IPO a ‘Neutral’ rating, Religare Research, in a report, said, “At a P/E of 22.95x, Adroit Industries trades at a premium valuation, which warrants some caution despite its improving financial performance.”
It added that the company has recorded increasing revenue, profitability and margins. However, its recent topline active has been slower revenue growth has been relatively compared with its other strengths, while the premium valuation adds to the valuation concerns.
Adroit Industries IPO subscription timeline
The Adroit Industries IPO will close its bidding window on September 25. Its share allotment process is expected to be completed by September 28, while refunds are likely to be processed by September 29, and bidder shall receive their allotted shares on this day as well.
The company is expected to list on the NSE and BSE on September 30.