The initial public offering (IPO) of GNA Axles was subscribed 54.18 times on day three, with investors bidding for 24.21 crore shares against 44.7 lakh shares on offer.
GNA Axles raised Rs 130 crore when calculated at the upper end of the price band of Rs 205-207 per share. The IPO comprised an issue of up to
63 lakh shares, of which 2 lakh shares were reserved for employees.
Qualified institutional buyers (QIBs) bid for 2.09 crore shares against 12.2 lakh shares on offer, 17.18 times their quota. High net-worth (HNIs) individuals bid for 19.89 crore shares against 9.15 lakh, oversubscription of 217.47 times. Retail investors bid for nearly 10.38 times of their quota, or 2.21 crore shares against 21.35 lakh reserved for them.
Employees of the company bid 0.31 times of their quota or 62,090 shares against 2 lakh shares reserved for them.
On September 12, the company raised approximately Rs 37.88 crore by allotting 18.3 lakh shares to seven anchor investors at a price of Rs 207 apiece.
Among the investors who were allotted shares in the pre-IPO placement include HDFC Mutual Fund, UTI Mutual Fund and Reliance Mutual Fund.
The company proposes to utilise the net proceeds of the issue for the purchase of plant and machinery, capital requirements and general corporate purposes. PNB Investment Services and Ambit Private were the book running lead managers to the issue.
GNA Axles ended 2016 with revenues of Rs 508.9 crore, up 18.18% from the previous year, and a profit of Rs 25.9 crore, up 20.47%. Total expenses were up 14.56% at Rs 469.6 crore. In fiscal 2016, GNA’s domestic sales and export sales constituted 45.29% and 54.71% of its revenue from operations, respectively, on a consolidated basis.
GNA Axles makes axle shafts used in on-highway and off-highway vehicular segments.
The company manufactures and supplies a range of axle shafts, other shafts and spindles for the on-highway segment, i.e. light commercial vehicles, medium commercial vehicles and heavy commercial vehicles. The company also makes components for other transport vehicles such as buses.
Its customers include original equipment manufacturers such as M&M, John Deere, Tractors and Farm Equipment (TAFE), and tier-1 suppliers to OEMs such as Automotive Axles, Meritor HVS AB and Dana Limited.