Initial public offering (IPO) of GNA Axles was oversubscribed 2.03 times on the second day of offer on Thursday. The public offer received bids for around 90.80 lakh shares against 44.70 lakh shares offered by the company. The issue was opened for subscription September 14 and will close on September 16 (Friday). GNA Axles has fixed a price band of Rs 205–207 per share for the offer.
On Day 1, the IPO was subscribed 64 per cent. Non-institutional investors (NII) segment was oversubscribed 1.52 times on the first-day of offer, while retail investors category got subscribed 0.67 times. Employees quota subscribed by 17 times.
The IPO comprises an issue of up to 63 lakh shares. The net public issue comprises of up to 61 lakh shares and an eligible employee reservation portion of up to 2 lakh shares.
The company on September 12 (Monday) raised around Rs 38 crore from anchor investors by selling shares at the upper price band of Rs 207 per share. The objective of the issue is to utilise the net proceed for purchase of plant and machinery, to meet working capital requirements and general corporate purposes. PNB Investment Services and Ambit Private are the book running lead managers to the issue.
Reliance Securities is positive on GNA Axles IPO. The brokerage house in a research note said, “We recommend ‘Subscribe’ to the issue with an eye on listing gain on the basis of stable EBITDA margin, presence in niche segment and healthy revenue from overseas sales and a supportive balance sheet.”
Shares of the company are proposed to be listed on NSE and BSE.