Construction engineering firm Vishal Nirmiti will open its initial public offering (IPO) of Rs 178 crore for public bidding on September 30. The Vishal Nirmiti IPO is a book-build issue, comprising a fresh component of Rs 145 crore and an offer-for-sale portion of Rs 33 crore.
The issue price band for the offer has been fixed at Rs 208 to Rs 220, and its bidding window will close by October 5. In case you wish to apply for the Vishal Nirmiti IPO, here are all the details you need to know
Vishal Nirmiti IPO: Offer size and lead managers
The Mumbai-based firm plans to raise Rs 178 crore by issuing 65.91 lakh fresh equity shares of Rs 10 each. Promoter group Vaman Prestressing Company will offload 15 lakh shares aggregating to Rs 33 crore via the OFS route.
Saffron Capital Advisors is the book-running lead manager for the issue, while MUFG Intime India is acting as its registrar.
Vishal Nirmiti IPO: Lot size
In order to apply for the Vishal Nirmiti IPO, retail investors need to bid for a minimum of one lot comprising 68 shares, equating to an investment of Rs 14,960. The upper cap for retail applicants is fixed at 13 lots, while small-high-net-worth individuals can apply for a minimum of 14 and a maximum of 66 lots.
Big HNIs can bid for a minimum of 67 lots, comprising 4556 shares, reflecting an amount of Rs 10,02,320.
Vishal Nirmiti IPO: Utilisation of proceeds
The company will divert fresh capital worth Rs 75 crore towards funding its working capital requirements, while Rs 19 crore will be deployed for repayment/pre-payment of loans availed by the firm. The remaining amount will be utilised for general corporate purposes.
Vishal Nirmiti IPO: Grey market activity
Over the past sessions, the grey market premium (GMP) for Vishal Nirmiti’s issue has been relatively stable at Rs 6, reflecting a likely listing price of Rs 226, based on the upper end of the price band. This points to gains of 2.73% per share and a profit of Rs 408 per lot.
However, readers must know that GMP is not an official metric to determine the listing price and does not guarantee profits.
Vishal Nirmiti IPO: Subscription timeline
The IPO, which opened for public bidding on October 30, will close its subscription window on September 5. Its share allotment process is expected to be completed by October 6, and bidders are expected to receive their shares and refunds by October 7. Vishal Nirmiti is likely to list on the NSE and BSE on October 8.