The initial public offering of Devson Catalyst opened for subscription today, on July 9 and will remain available for investors until July 13. The response on the first day has been strong, with the issue being fully subscribed within the first two hours of trading.
On July 9, the company received bids for 1.94 crore shares against the 25.87 lakh shares on offer. This translates to an overall subscription of 7.5 times, as per the data available from BSE.
The demand was primarily driven by individual investors, who subscribed to 10.96 times the shares reserved for their category. Non-institutional investors also showed significant interest, with their portion being subscribed 7.8 times so far. The qualified institutional buyers segment has seen a subscription of 1.72 times their allotted quota.
Devson Catalyst shares were commanding a grey market premium of Rs 50 per share on the morning of July 9, according to IPO-tracking platforms. IPO Watch estimated the GMP at Rs 50, implying a potential listing gain of 42.37 percent over the upper end of the price band. Investorgain also pegged the GMP at Rs 50.
The company aims to raise Rs 42 crore through this public issue. The price band for the offering has been set at Rs 112 to Rs 118 per share. The total issue comprises a fresh issue of 0.33 crore equity shares, which will raise approximately Rs 39.39 crore, and an offer for sale of 0.03 crore equity shares valued at Rs 2.95 crore.
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The allocation structure for the issue is defined clearly. Half of the total issue has been reserved for qualified institutional buyers. Non-institutional investors have been allocated 15 percent, while the remaining 35 percent is set aside for retail investors. Additionally, the company has reserved 64,800 equity shares for its employees and 1,80,000 equity shares for the market maker. After these reservations, the net offer size stands at 3,343,200 equity shares.
The lot size for the IPO has been fixed at 1,200 shares. For retail investors, this means a minimum investment of approximately Rs 1.41 lakh at the upper end of the price band to participate in the offering. The shares are proposed to be listed on the BSE SME platform.
The basis of allotment is likely to be finalised on July 14, and the stock is expected to debut on the exchange on July 16.
Regarding the use of funds, the company has stated that the proceeds from the fresh issue will be directed primarily toward financing capital expenditure for setting up a new manufacturing facility. A portion of the funds will also be used to meet working capital requirements and support general corporate purposes.
JJ IPO Advisors is serving as the book-running lead manager for the issue. MUFG Intime India has been appointed as the registrar, and MNM Stock Broking will act as the market maker.
Devson Catalyst, incorporated in 2004, is involved in the manufacturing of catalysts, adsorbents, ceramic balls and other related products. Its product portfolio serves industries such as petroleum refining, petrochemicals, fertilisers, gas processing, environmental applications, and speciality chemicals.
The company operates manufacturing facilities in Gujarat and supplies its products to customers in both domestic and international markets.
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