Highness Microelectronics IPO garners strong demand from investors, sees 8.13 times subscription on day 2

Highness Microelectronics has received strong response for its IPO from investors since the day one, as the offer has seen a massive 8.13 times subscription till March 25, the second day of bidding.

The digital-imaging solutions provider is raising Rs 21.67 crore via initial public offering (IPO) of 18.06 lakh shares. The price band for the offer is Rs 114-120 per share.

The IPO is a mix of fresh issue of 16.53 lakh shares worth Rs 19.84 crore, and an offer-for-sale of 1.52 lakh shares amounting to Rs 1.82 crore by promoters.

Highness Microelectronics attracted the demand for 1.05 crore shares from investors against the offer size of 12.94 lakh shares via 3,537 applications. Retail and non-institutional investors were at the forefront, bidding 12.25 times, and 8.97 times their allocated quota, while the portion set aside for qualified institutional buyers was subscribed 4 percent.

The company already raised Rs 6.13 crore by issuing 5.11 lakh shares to three anchor investors - Shine Star Build-Cap, Saint Capital Fund, and Vikasa India - at the upper price band on March 23, a day before the IPO opening for public subscription.

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Highness Microelectronics shares traded at more than 24 percent premium in the grey market, the market observers said.

The offer will remain for the public till March 27.

Mumbai-based Highness Microelectronics that offers flat panel displays, and display-enhancement solutions intends to utilise fresh issue proceeds for setting up an assembly line at factory in Mumbai, working capital requirement, repayment of borrowing, and general corporate purposes.