NFP Sampoorna Foods IPO fully booked, Teamtech Formwork Solutions IPO undersubscribed

Raw cashew nuts importer NFP Sampoorna Foods' IPO was fully booked on its second day of bidding, while the public issue of Teamtech Formwork Solutions was undersubscribed on its first day of bidding, on May 19.

NFP Sampoorna Foods offer will close on May 20, while the IPO of Teamtech Formwork Solutions will remain open for subscription till May 21.

Investors have bid 45.1 lakh shares against the offer size of 44.6 lakh shares via 993 applications, resulting into 1.01 times subscription supported by qualified institutional buyers and retail investors.

The portions set aside for qualified institutional buyers and retail investors were fully subscribed at 1x and 1.76 times, respectively, while non-institutional investors bid 37 percent of their reserved portion.

NFP Sampoorna Foods, a food processing and trading company, is raising Rs 24.5 crore via initial public offering (IPO) at the upper end of price band of Rs 52-55 per share.

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The company intends to spend Rs 7.25 crore of proceeds from the IPO for its working capital requirements, Rs 9.5 crore for repayment of certain outstanding borrowings, and the remaining amount for general corporate purposes.

Meanwhile, Teamtech Formwork Solutions has attracted bids for 28.16 lakh shares against its IPO size of 56.94 lakh shares, resulting into a 49 percent subscription on Tuesday.

Qualified institutional buyers bid 65 percent of their reserved portion, while the parts set aside for non-institutional and retail investors were subscribed 79 percent and 35 percent, respectively.

The company that engaged in the manufacturing, refurbishing and renting of modular T formwork and customised formwork system for the construction industry is mobilising Rs 50.2 crore via maiden public issue at the upper end of price band of Rs 61-63 per share.

Of which, Rs 14.27 crore has already been raised by Teamtech through issuance of 22.66 lakh shares to seven anchor investors including Finavenue Capital Trust, Invicta Capserv, Navbharat Investment Trust, and Darwin Evolution Growth Fund.

Teamtech Formwork Solutions intends to spend Rs 11.92 crore of IPO proceeds for purchase of plant and machineries for expansion of new manufacturing unit.

The proposed installation of additional plant and machinery is expected to augment the company’s manufacturing capacity by approximately 67,392 square meters, leading to the total capacity of approximately 1,03,392 square meters.

This expansion is expected to ease existing bottlenecks, improve operational efficiency, and support the Company’s ability to cater to growing demand, thereby contributing to revenue growth, the company said.

Further, Teamtech Formwork that offers modular T-formwork solutions on a B2B model will utilise Rs 15.5 crore IPO funds for repayment of borrowings, Rs 13.76 crore for fresh working capital requirements, and the remainder money for general corporate purpose.

Currently, the company operates a manufacturing facility at Bolaram. It has been allotted an industrial land parcel by TSIIC and has commenced development of Innovation Hub to enhance production and engineering capabilities. Further, it has acquired more than 4 acres land parcel by way of purchase near Hyderabad International Airport to set up a new manufacturing facility.