Last month, BSE’s depository unit CDSL’s much-celebrated Rs 524 crore IPO made the highest ever subscription record with the issue bought over 170 times. This week, a much smaller IPO of a little-known company broke that record by over a hundred points, and not many people seemed to notice.
Salasar Techno Engineering’s Rs 36 crore public offer for sale of shares was subscribed by a massive 273 times at the close of the issue yesterday, getting bids aggregating to just short of Rs 10,000 crore. The IPO got bid for 90.11 crore share at the end of the four-day bidding against 33.21 lakh shares on offer. Not only this, the high net-worth individual quota of the issue was bought over 478 times, with the retail investors portion getting subscribed by 56 times.
Salasar Techno Engineering, which makes galvanised steel products, counts well-known companies such as Power Grid Corporation among its clients. The company is free from long-term debt, and intends to utilise the proceeds from the issue to meet the working capital requirements and general corporate purposes.
Salasar Techno Engineering IPO’s attractive pricing at just seven times the company’s fiscal year 2016-17 earnings seemed to be the main draw for the investors. The company reported a consolidated net profit of Rs 18.37 crore in the last financial year 2016-17 on a revenue of Rs 373 crore.
Notably, it was Religare which held the record for the highest subscription for almost 10 years till June this year, before CDSL wrestled away the top spot. Salasar Techno dethroned CDSL in less than a month. CDSL got listed at a premium of 75% over the issue price, which was not surprising at all given the huge investor interest and subscription figures. Salasar Techno Engineering is due to list later this month and it will be interesting to watch how it fares.