Ratnaveer Precision Engineeringring is the first company to be listed under the T+3 method and its shares performed strongly on the exchange for the first time, rising by more than 30%.
The company’s shares were initially issued at Rs 128, an increase of 30.61% from the issue price of Rs 98 on the Bombay Stock Exchange. On the day, the stock rose 37.14% to close at Rs 134.40. On the NSE, the stock was trading at Rs 123.20, up 25.71%. The company’s shares closed at Rs 129.35 per share, a rise of 31.98%.
Ratnaveer Precision Engineering IPO was subscribed 93.99 times. The retail category of this public offering was subscribed 54 times, the QIB category was subscribed 133.05 times, and the NII category was subscribed 135.21 times.
The IPO includes the issuance of fresh shares of Rs 135.24 crore and OFS worth Rs 29.79 crore (by promoter selling shareholder Vijay Ramanlal Sanghavi).
As part of the IPO process, the company raised around Rs 49,500 million from major investors by allotting 50,52,000 equity shares at Rs 98 per share. Domestic and foreign investors participating in the anchor window include Société Générale, 16th Street Asia Gem Fund, Saint Capital Fund, Coeus Global Opportunities Fund, Leading Light Fund VCC-Triumph Fund, etc.
Usage of funds
The net proceeds from the new issue will be used to fund working capital requirements and general corporate purposes.
The Securities and Exchange Board of India (SEBI) on August 9 halved the time it takes for stocks to be listed on stock exchanges after an IPO from six days to three days. SEBI said the new listing schedule will be voluntary for all public issues on or after September 1 and mandatory for all public issues after December 1 .
However, Ratnaveer Precision decided to go public on a voluntary basis on t+3 basis.