Shri Techtex's SME IPO Oversubscribed; Check GMP, Allotment, Listing Details

Fabric manufacturer, Shri Techtex on the first day of its SME initial public offering (IPO) fully subscribed 6.96 times. Retail investors were the top buyers of Shri Techtex IPO, while strong demand was also seen from qualified institutional buyers and non-institutional investors. The IPO opened on July 26 and will close on July 28.

As per the NSE data, Shri Techtex IPO received bids of 3,69,06,000 equity shares on Wednesday as against the offered size of 53,00,000 equity shares, registering a subscription of 6.96 times.

Data further revealed that retail investors bid for 2,62,80,000 equity shares against the reserved equity shares, while NIIs recorded bids of 42,76,000 equity shares. QIBs category that includes foreign institutional investors, banks, financial institutions, insurance companies, and mutual funds among others, subscribed to 63,50,000 equity shares.

The IPO will continue from 10 a.m. to 5 p.m. on July 27 and July 28 as well.

The IPO is entirely book building and the price band is fixed at Rs 54 to Rs 61. The face value of equity shares offered in the IPO is Rs 10 each.

Meanwhile, the bid lot size is 2,000 equity shares and in multiples thereof. The maximum subscription amount for retail investors is set at Rs 2 lakh, while the maximum quantity that QIBs can bid is 49,28,000 equity shares and NIIs at 35,18,000 equity shares.

As per the IPOShareBrokers, the grey market premium of Shri TechTex SME is Rs 40 per share --- indicating a whopping 65.57% premium listing of Rs 101 apiece (Rs 61 + Rs 40).

The IPO is set to list on the Emerge platform of the stock exchange NSE.

The proceeds of the IPO will be used by the company for the construction of a factory shed; the purchase of machineries; the commissioning of the solar plant's working capital requirements; and general corporate purposes.

Beeline Capital Advisors is the book-running lead manager, Axis Bank is the sponsor bank, and Link Intime India is the registrar of the issue.

Shri TechTex is engaged in the business of manufacturing of Polypropylene (PP) Non-Woven Fabric. It has a manufacturing facility in Simaj of Dholka Taluka in Ahmedabad District of Gujarat. The manufacturing facility is well connected with near about transport hubs. Further, its manufacturing facility is spread across 41548 sq. meters. The manufacturing facility is installed with a manufacturing capacity of 3600 MT PP non-woven fabric per annum.

Till the date of filing the red herring prospectus, the company manufactured PP non-woven fabric up to 4.5 meters in size and 15 GSM to 800 GSM.

By the end of FY23, the company's net worth stood at Rs 29.82 crore as against Rs 21 crore in FY22 and Rs 20.76 crore in FY21.

As per the Chittorgarh data, the basis of allotment of equity shares of the IPO is expected to be scheduled on August 2, while refunds will be initiated likely on August 3, credit of shares in Demat accounts seen on August 4, and listing date is accordingly expected on August 7.