Now Reading: Ardee Industries IPO 98 Times Subscribed on Final Day
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Ardee Industries IPO 98 Times Subscribed on Final Day
Ardee Industries’ Rs 426-crore initial public offering was subscribed 98.07 times by 3.09 pm on August 7, according to The Hindu BusinessLine. The qualified institutional buyer portion was booked 98.32 times, the…
The Story in Brief
Ardee Industries’ Rs 426-crore initial public offering was subscribed 98.07 times by 3.09 pm on August 7, according to The Hindu BusinessLine. The qualified institutional buyer portion was booked 98.32 times, the non-institutional investor category 233.29 times and the retail portion 39.98 times. The issue, priced at Rs 50 to Rs 53 per share, includes a Rs 320-crore fresh issue and an offer for sale of up to 1.99 crore shares by promoters Sandeep Aggarwal and Nikunj Aggarwal.
The company plans to use Rs 220 crore of the fresh proceeds for working capital, Rs 22 crore for debt repayment and the balance for general corporate purposes. It had raised Rs 127.75 crore from anchor investors. Grey market signals were positive, but figures differed by source, with Mint reporting a Rs 15 premium and NDTV Profit citing a 26% implied listing gain. Listing is scheduled for August 12.
The Indian Opinion
The subscription numbers can tempt investors into treating demand as proof of business quality. That is a lazy conclusion. Mint also cites concerns over weak cash conversion, elevated debt and the top five clients accounting for 82% of revenue. Grey market premiums are informal and can change quickly. The useful test is not a first-day pop, but whether working-capital needs, debt and client concentration improve in the next reported results.
Sources (3): ndtvprofit.com, livemint.com, thehindubusinessline.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
