Craftsman Automation: On Day 1 of IPO, 55% of subscription offered; QIBs yet to bid
The Craftsman IPO consists of a fresh issue of Rs 150 crore and the remaining will be sold through an offer for sale.
On day one, 55 percent of Craftsman Automation initial public offering (IPO) has been subscribed. The offer size of the Craftsman IPO is 38.69 lakh equity shares and so far, it has received offers for 21.31 lakh equity shares.
As reported by Moneycontrol, the non-institutional investors’ reserved portion of the issue has been subscribed 9 percent while the retail investors subscribed to the issue 1.06 times. The report mentions that qualified institutional buyers have not started bidding for the Craftsman IPO yet.
Selling its shares in the price band of Rs 1,488- Rs 1,490 per equity share, the company plans to raise funds worth Rs 823.70 crore from the issue. The Craftsman IPO consists of a fresh issue of Rs 150 crore and the remaining will be sold through an offer for sale.
The lot size of Craftsman IPO is 10 and an investor can apply for a maximum of 13 lots. The price of 130 shares is Rs 1,93,700.
Speaking about the issue, ICICI direct has recommended investors subscribe. It stated, “With a lumpy capex cycle behind it and focus on debt reduction, it is well poised to clock healthy returns ratios in FY22-23. At IPO price, it is offered at reasonable forward valuations,” reported Moneycontrol.
Through an offer for sale in the Craftsman IPO, investors K Gomatheswaran, Marian III (Singapore) PTE and International Finance Corporation, promoter Srinivasan Rani will offload their shares.
Allotment of shares is expected to be finalised by 22 March and the listing of Craftsman IPO will be on 25 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
In all, Craftsman Automation seeks to raise Rs 824 crore, which will be used to repay or prepay borrowings as well as pay for general corporate purposes
The purpose of the IPO was to use the proceeds to repay or pre-pay the company's borrowings and to meet general corporate purposes