Craftsman Automation IPO subscribed 1.26 times on Day 2; bidding closes on 18 March
The Rs 823.7 crore IPO includes a fresh issue of shares worth Rs 150 crore, and an offer-for-sale of up to 45 lakh equity shares in the price band of Rs 1,488-1,490 a share
Craftsman Automation initial public offering (IPO) was subscribed 1.26 times on the second day of the bidding. The IPO has received bids for 48.56 lakh equity shares against the size of 38.69 lakh equity shares.
The auto component maker was subscribed 55 percent at the end of the first day of the bidding process, a report in Moneycontrol.com had said.
Established in 1986 in Coimbatore, the company boasts of customers such as Tata Motors, Daimler India, Tata Cummins, Mahindra & Mahindra, Royal Enfield, Siemens, John Deere, JCB India, TVS Motors, Royal Enfield, Escorts, Ashok Leyland among others.
The IPO of the company, which opened on 16 March, will close on 18 March. A price band of ₹1,488-1,490 a share has been fixed for its IPO.
The Rs 823.7 crore initial public offering is made up of a fresh issue of shares worth Rs 150 crore, and an offer-for-sale of up to 45 lakh equity shares. The company, on Friday, raised Rs 247 crore from 21 anchor investors. The anchor investors include notable names such as Tata Mutual Fund (MF), Aditya Birla Sunlife MF, HSBC Global Investment Funds, and The Nomura Trust.
The allotment of shares will take place on 22 March and the share will be listed on BSE and NSE on 25 March.
Speaking to Economic Times, ICICI Securities said that Craftsman Automation is a play on revival in the automotive industry. “It is well poised to clock healthy returns ratios in FY 22-23. At IPO price, it is offered at reasonable forward valuations,” the brokerage was quoted as saying. The firm also gave a subscribe rating on the issue.
According to a research report by ICICI Direct, the company’s top 10 customers constituted 53 percent, 59 percent of its sales as of the first nine months of FY20, respectively.
The report states that the company also has “high client stickiness” with more than 50 percent of sales coming from clients who were associated with the company for less than a decade.
Electronics Mart India submitted draft papers to SEBI in September last year. As per the DRHP, the retail quota is 35 percent, the QIB quota is 50 percent, and the NII quota is 15 percent.
SEBI chairperson Madhabi Puri Buch had said on Tuesday that the regulator has 'no business' in suggesting the price of the public issue, but companies need to disclose what prompted them to change their valuation
According to primedatabase.com, the overall public response was moderate. A total of four issues out of 14 got subscribed more than 10 times, while three IPOs were oversubscribed by more than 3 times