Punjab-based GNA Axles which hit capital markets on Wednesday to raise around Rs 130 through an initial share-sale programme was subscribed 64 per cent on the first day of offer till 5 pm. The auto component manufacturer received bids for around 28.50 lakh shares against 44.70 lakh shares offered by the company. It has fixed a price band of Rs 205-207 per equity share for the offer. The public issue will close on Friday. Ambit Private Limited and PNB Investment Services are the book running lead managers to the issue.
The company on September 12 had raised around Rs 38 crore from anchor investors by selling shares at the upper price band of Rs 207 apiece. 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. Shares of the company are proposed to be listed on NSE and BSE both.
For the year ended FY2016, GNA Axles posted a net profit of Rs 25.96 crore, up 20.17 per cent, against Rs 21.60 crore last year. It reported a net profit of Rs 16.93 crore, 4.81 crore and 13.26 crore in FY12, FY13 and FY14, respectively.
Angel Broking is positive on the issue. “GNA Axles has a better margin and ROE profile than its comparable peers. Considering high export revenue composition, expected recovery in domestic sales and the company’s market leadership position in the tractor segment; plus, given the relatively attractive valuation proposition. We recommend a ‘Subscribe’ on the issue,” the broking firm said in a research note.