Salasar Techno Engineering, a small-sized steel fabrication and infrastructure services provider, which surprised earlier this month with a record IPO subscription at over 270 times, got listed today with a bumper opening on the stock exchanges. Salasar Techno’s shares opened for trading today at Rs 250, a whopping 140% premium to issue price of Rs 108. Its shares soon further rose to the day’s high of Rs 262.5 on the NSE.
Last week, Salasar Techno Engineering Rs 36 crore public offer for sale of shares was subscribed by a massive 273 times at the close of the issue, beating the previous record of over 170 times subscription for CDSL’s IPO earlier this year. Salasar Techno Engineering’s IPO got bids aggregating to just short of Rs 10,000 crore. The IPO got bid for 90.11 crore share at the end of the four-day bidding against 33.21 lakh shares on offer.
Not only this, the high net-worth individual quota of the issue was brought over 478 times, with the retail investors portion getting subscribed by 56 times. The proceeds from the issue is intended to be utilised for meeting working capital requirements and general corporate purposes.
The company offers engineering, procurement, and control services for rural electrification, power transmission lines, and solar power plant projects. It also undertakes civil foundation works, and erection of telecom and transmission towers at site, including painting, as well as EPC turnkey projects for solar mounting structures.The company exports its galvanized products to South Africa, Myanmar etc. the relatively unknown company has renowned clients such as Powergrid Corporation, Bharti Infratel Ltd and Reliance Jio Infocomm Ltd.
Another uptick for the company is that it’s free from long term debt.The company reported a consolidated net profit of Rs 18.37 crore in the last financial year 2016-17 on a revenue of Rs 373 crore.
This is not the first time that a lesser known company has garnered such public interest this year. AU small finance bank, was oversubscribed by nearly 54 times in June. With many more smaller companies IPOs in the pipeline, it remains to be seen whether all them receive such a stellar reception.