Swastika Infra IPO subscribed 11% so far on Day 1; check latest GMP

The latest market report highlights that Rajasthan-based power project services provider Swastika Infra has opened its initial public offering (IPO) today, with the offering receiving 11 percent subscription as of 10:40 am on September 23, according to NSE data.

The Rs 161-crore IPO received bids for 7,17,255 shares, against 63,35,001 shares on offer. The demand was led by retail market participants, whose portion was subscribed 16 percent. The non-institutional investor (NII) category followed with 14 percent subscription.

The Rs 161-crore IPO will stay open for subscription until September 25. The price range has been set at Rs 175-185 per share. The offering is scheduled to list on both the BSE and NSE on September 30.

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In the grey market, Swastika Infra shares were commanding a premium of around Rs 8 per share on September 23, according to IPO Watch. At the upper end of the IPO price range of Rs 185, this translates into a premium of around 4.3 percent over the offering price.

Market participants should note that GMP is an unofficial market indicator and does not guarantee the actual stock-exchange debut price.

Ahead of the public offering, Swastika Infra boosted Rs 48.26 crore from six anchor market participants.

The firm allotted 26.08 lakh shares to anchor market participants on September 22 at the upper end of the price range of Rs 185 per share.

Shine Star Build-Cap, Minerva Ventures and Longthrive Capital VCC were the largest market participants in the anchor book, with each investing Rs 10 crore for 5.4 lakh shares.

Krone Finstock acquired 4.46 lakh shares for Rs 8.25 crore, while Swyom India Alpha Fund and Asas Global Fund Incorporated VCC Sub Fund each picked up 2.7 lakh shares for Rs 5 crore.

The Rs 160.88-crore public offering comprises a fresh offering of shares worth around Rs 128.5 crore and an offer for sale (OFS) of up to 17.5 lakh shares by promoters and other shareholders.

Of the net proceeds from the fresh offering, the firm plans to utilise Rs 90 crore towards incremental working capital requirements. The remaining funds will be used for general corporate purposes.

Swastika Infra is an engineering, procurement and construction (EPC) firm focused on power transmission and distribution (T&D) infrastructure projects. The firm provides services covering the conceptualisation, design, supply, installation, testing and commissioning of power projects on a turnkey basis.

Srujan Alpha Capital Advisors LLP and PhillipCapital (India) are acting as the merchant bankers to the offering.