The Amanta Healthcare IPO has entered Day 2 of subscription. The public offer, which opened on September 1, will close on September 3. But the big question many are asking is – will the issue list at a premium?
Let’s take a look at 5 key things investors need to know this ongoing mainboard IPO –
Amanta Healthcare IPO Day 2: Grey Market Premium dips
The grey market premium (GMP), often seen as an indicator of listing expectation, has been trending lower after hitting the highest level of Rs 28 a share on Sunday, August 31. Since then, it has cooled off to Rs 20.
This dip indicates a potential listing at nearly 16% above its upper price band of Rs 126 per share. However, it is also important to note that GMP is not the official listing price and may fluctuate based on the market sentiment.
Amanta Healthcare IPO Day 2: IPO subscription so far
For every IPOs, subscription figures tell their own story. On Day 2, the IPO was subscribed 7.78 times so far. The retail portion wasvoversubscribed nearly 11 times as of now.
Non-institutional investors received bids close to 11 times their quota. On the other side, the qualified institutional buyer (QIB) segment, however, remained muted at just 0.06 times so far.
Amanta Healthcare IPO Day 2: Timeline for allotment and listing
For those tracking key dates, the IPO closes on September 3 with the cut-off time for UPI mandate confirmations at 5 PM.
The allotment of shares is expected on September 4, followed by refunds and credit to demat accounts on September 8. After these processes, the stock is likely to make its market debut on September 9.
Amanta Healthcare IPO Day 2: Where the IPO money will be used
Amanta Healthcare plans to deploy the IPO proceeds towards expansion at its Hariyala facility in Gujarat.
A large part of the funds, around 70%, will go into civil construction and new equipment for its SteriPort line, while the rest will strengthen the SVP line. Some funds are also placed for general corporate purposes, giving the company room to scale operations.
Amanta Healthcare IPO Day 2: Valuation snapshot
At the upper price band of Rs 126 per share, Amanta Healthcare’s post-IPO market capitalisation is estimated at around Rs 489 crore. This gives it a price-to-earnings ratio of nearly 47 times, placing it at a moderate premium compared to some listed pharmaceutical peers.