GNA Axles closes 18% up in market debut

By: | Published: September 27, 2016 6:11 AM

Jalandhar-based GNA Axles on Monday debuted on the bourses ending the session at R245 a piece, up nearly 18% over the issue price of R207.

Jalandhar-based GNA Axles on Monday debuted on the bourses ending the session at R245 a piece, up nearly 18% over the issue price of R207. The stock listed at R248, a premium of nearly 20% to the issue price. Post listing, the stock commands a market capitalisation of R526.22 crore.

page 11 graph 2The initial public offering (IPO) in the price band of R205-207 per share, was oversubscribed 54.18 times with bids coming for 24.21 crore of the 44.7 lakh shares on offer. Qualified institutional buyers (QIB) bid for 2.09 crore of the 12.2 lakh shares on offer, a subscription of 17.18 times. High net-worth individuals(HNI) bid for 19.89 crore of the 9.15 lakh shares reserved for them, bidding 217.47 times of their quota. The retail portion was subscribed by 10.38 times with the investors bidding for 2.21 crore shares of the total 21.35 lakh shares offered to them.

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 R508.9 crore, up 18.18% from the previous year, and a profit of R25.9 crore, up 20.47%. Total expenses were up 14.56% at R469.6 crore. GNA’s domestic sales and export sales constituted 45.29% and 54.71% of its revenue from operations, respectively.

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