1 day ago
Adroit Industries IPO Draws Strong Demand, GMP Signals Premium
Adroit Industries’ Rs 151 crore IPO was subscribed 5.18 times on day one.
Investors submitted bids for 4.07 crore shares against 78.72 lakh shares offered.
Retail investors and non-institutional investors subscribed 7.24 times and 7.20 times, respectively.
The grey market premium was reported at Rs 35, or 26%, implying a possible Rs 169 listing price.
Religare Research gave the issue a Neutral rating, citing premium valuation despite improving financial performance.
- Who
- Adroit Industries and investors participating in its initial public offering.
- What
- The company’s Rs 151 crore IPO was subscribed 5.18 times on its first bidding day.
- Where
- The shares are expected to list on the National Stock Exchange of India and BSE Limited; the reported grey-market trading was in unlisted markets.
- When
- Bidding began with day-one figures reported as of 7:00 PM IST; the issue closes on September 25 and is expected to list on September 30.
- Why
- Investors bid for shares offered by Adroit Industries through a fresh issue and an offer for sale.
Market Enthusiasm
Valuation Caution
Investor demand
Market Enthusiasm
The IPO attracted strong day-one demand, led by retail investors and non-institutional investors, and the grey-market premium suggested potential listing gains.
Valuation Caution
Grey-market premiums are unofficial, can change with market sentiment, and do not determine the actual listing price.
Company valuation
Market Enthusiasm
Adroit Industries has reported increasing revenue, profitability and margins, according to Religare Research.
Valuation Caution
Religare Research rated the issue Neutral, saying its 22.95-times price-to-earnings valuation appeared premium and warranted caution, while recent revenue growth was comparatively slower.
Key facts
- Issue size
- Rs 151 crore
- Day-one subscription
- 5.18 times
- Total bids
- 4.07 crore shares against 78.72 lakh shares offered
- Price band
- Rs 126-Rs 134 per share
- Lot size
- 111 shares
- Grey market premium
- Rs 35, or 26%, according to trackers
- Expected listing date
- September 30 on the National Stock Exchange of India and BSE Limited
Quotes
Religare Research
Brokerage research firm that issued a Neutral rating on the IPO
“At a P/E of 22.95x, Adroit Industries trades at a premium valuation, which warrants some caution despite its improving financial performance.”
financialexpress.com
Sources
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