A-One Steels India IPO subscribed 80% so far on Day 2; GMP at 12%

The latest market report highlights that Bengaluru-based steel manufacturer A-One Steels India's initial public offering (IPO) continued its healthy demand on the second day of bidding on September 25, with the offering subscribed 80 percent as of 11:30 am, according to NSE data.

The Rs 405-crore IPO received bids for 58.66 lakh shares against 73.85 lakh shares available for subscription. The non-institutional category saw 100 percent subscription, while the retail portion was subscribed 98 percent.

In the grey market, A-One Steels India shares were commanding a premium of around 12 percent on the morning of September 25, according to InvestorGain.

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That stated, the grey market premium is an unofficial indicator and can fluctuate before stock-exchange debut. It does not guarantee the actual stock-exchange debut price or post-stock-exchange debut returns.

Ahead of the public offering, A-One Steels India boosted Rs 120.9 crore through its anchor book on September 23. The firm allotted 29.85 lakh equity shares to eight anchor market participants at the upper end of the price range of Rs 385-405 per share.

LRSD Securities was the largest anchor investor, acquiring 7.01 lakh shares worth Rs 28.39 crore. Morgan Stanley picked up 6.17 lakh shares for Rs 25 crore, while Longthrive Capital subscribed to 4.98 lakh shares worth Rs 20 crore.

The IPO opened for subscription on September 24 and will stay open until September 28. The offering consists of a fresh offering of equity shares worth Rs 355 crore and an offer-for-sale (OFS) of shares worth Rs 50 crore by the promoters.

A-One Steels India plans to deploy Rs 250 crore from the net proceeds of the fresh offering towards repayment of debt. The balance amount will be utilised for general corporate purposes.

The firm and its subsidiaries operate six manufacturing facilities across Karnataka and Andhra Pradesh. Together, these facilities have a total manufacturing capacity of 17,33,100 metric tonnes per annum (MTPA) across intermediate, finished steel and industrial products.

Its product portfolio includes MS billets, sponge iron, hot-rolled (HR) coils, TMT bars and HR pipes.

PL Capital Markets and Khambatta Securities are the merchant bankers handling the A-One Steels India IPO.