GNA Axles, whose initial public offering (IPO) was oversubscribed nearly 55 times during September 14-16, made a robust debut on bourses
GNA Axles, whose initial public offering (IPO) was oversubscribed nearly 55 times during September 14-16, made a robust debut on bourses and listed at a premium of 21.74 per cent at Rs 252 on NSE against the issue price of Rs 207. Punjab-based auto component had fixed Rs 205-207 per share for the public offer. On BSE, shares of the company listed 20 per cent higher at Rs 248.50. Later, the scrip closed at Rs 245.15 on BSE and at Rs 248 on NSE.
GNA Axles proposes to utilise the net proceeds of the IPO for purchase of plant and machinery, meet working capital requirements and other general corporate purposes. Ambit Private and PNB Investment Services were the book running lead managers to the issue. The quota reserved for qualified institutional buyers (QIBs) was oversubscribed 17.18 times, while non-institutional investors category subscribed a whopping 217.47 times.
The company garnered around Rs 38 crore by allotting 18.30 lakh shares to anchor investors at the upper price band of Rs 207 per share. For the financial year ended March 31, 2016, GNA Axles’ domestic sales and export sales constituted 45.29 per cent and 54.71 per cent of its revenue from operations, respectively, on a consolidated basis.