Power infrastructure provider Lumino Industries is all set to open its Rs 700 crore offer for public bidding on August 27. The company has fixed its issue price band at Rs 72 to Rs 82 per share and will deploy the majority of the fresh proceeds towards repayment of its debt.
Ahead of its opening, the shares of Lumino Industries are trading in the grey markets at a premium of nearly 60%. Retail investors can bid for a minimum of one lot comprising 182 shares, equating to an investment of Rs 14,924.
In case you wish to apply for the Lumino Industries IPO, here are five details you need to know:
#1 Lumino Industries IPO: Offer Size and BRLMs
Lumino Industries IPO is a book-building issue of Rs 700 crore, comprising fresh equity worth Rs 500 crore, which the company will raise via the issuance of 6.10 crore equity shares. The remaining Rs 200 crore will be raised through the offer for sale route, as promoters will offload 2.44 crore shares of Rs 5 each.
Motilal Oswal Investment Advisors, JM Financial, and Monarch Networth Capital are the investment bankers of the IPO, while Bigshare Services is the registrar to the issue.
#2 Lumino Industries IPO: Utilization of proceeds
Of the total Rs 500 crore fresh proceeds, the company will utilize Rs 337 crore towards prepayment and repayment of outstanding borrowings. Around Rs 15 crore will be deployed by Lumino Industries to fund its capital expenditure requirements, which include the purchase of equipment, machinery, civil works, etc.
The balance will be used for general corporate purposes and shall not exceed 25% of the gross proceeds. Lumino Industries will not receive any amount raised through OFS.
#3 Lumino Industries IPO: Lot Size
Based on the upper end of the share price band, a retail investor can bid for a minimum of one lot comprising 182 shares, while the maximum they can bid for is 13 lots, equating to an investment of Rs 1,94,012.
Small high-net-worth individuals can bid for a minimum of 14 lots and a maximum of 67 lots. The minimum lot size for big-HNI stands at 68.
Lumino Industries IPO: GMP at 60%
As per the latest update, the company’s shares are trading at a premium of 59.76% in the grey markets, suggesting an estimated listing price of Rs 131 on the upper end of the price band. This indicates gains of Rs 49 per share and a profit of Rs 8,918 per lot.
However, readers must know that GMP does not guarantee gains and is subject to fluctuation.
Lumino Industries IPO: Subscription timeline
The Lumino Industries IPO will open for public bidding on August 27 and close on August 31. Its share allotment process is expected to be completed by September 1, and investors shall be credited with their shares alongside the refunds by September 2.
Lumino Industries is expected to list on the NSE and BSE on September 3.