Indo MIM has announced the price band for its IPO worth Rs 3,812 crore. The precision engineering firm has fixed its price band at Rs 461 to Rs 485 per share, and the issue will open for public subscription on Thursday, July 23. The company’s shares are trading in the grey markets at a premium of over 42%.
Here are 5 major things you should know about the Indo MIM IPO.
Indo MIM IPO: Issue Size and BRLM
The IPO is a book-built issue of Rs 3,811.21 crore. Of the total float, the company will raise Rs 499.10 crore via the issuance of 1.03 crore equity shares, while shareholders will offload 6.83 crore equity shares to raise capital aggregating to Rs 3,311.21 crore.
The book-running lead managers for the issue are HDFC Bank, Axis Capital, ICICI Securities, Kotak mahindra Capital Company, and SBI Capital Markets. The registrar for the IPO is MUFG Intime India.
Indo MIM IPO: GMP at 42%
As per the latest update, the shares of Indo MIM are trading in the unlisted markets at a premium of Rs 205, or 42.27%, translating into an estimated listing price of Rs 690, based on the upper end of the price band.
The share price band for the offer has been set at Rs 461 to Rs 485.
However, it is important to know that GMP is an unofficial indicator of the listing price and fluctuates based on market mood and sentiment.
Indo MIM IPO: Subscription timeline
The IPO will open for anchor bidding on July 22, and the public can bid for the Indo MIM IPO shares from July 23 till July 27. Share allotment will be completed by July 28, while the requisite credit of shares and refunds will be done by July 29. The company will list on the exchanges on July 29.
Indo MIM IPO: Utilization of proceeds and Lot Size
Of the fresh proceeds, Indo MIM will deploy Rs 400 crore towards the repayment and prepayment of its debt, while the remaining amount will be allocated towards funding its general corporate purposes.
Retail applicants can bid for a minimum of one lot comprising 30 shares, translating into an investment of Rs 14,550, based on the upper end of the price band. Small non-institutional investors can bid for a minimum of 69 lots.
Indo MIM IPO: Key Risks
The IPO is vulnerable to several risks, including revenue concentration from its top ten clients, dependency on exports, risks pertaining to client retention, failure to procure raw materials, etc.
Additionally, risks related to imports, high operations in South India, third-party transactions, and technology may affect the company’s financials.
