Shares of integrated gold and silver platform Augmont Enterprises Ltd will debut on the bourses today. Earlier, the Rs 825-crore initial public offering (IPO) received a good response from investors and was subscribed 105.78 times on the final day of bidding on Tuesday. According to data available with the National Stock Exchange (NSE), the IPO received bids for 81,61,86,230 shares against 77,15,999 shares on offer. The portion for Qualified Institutional Buyers (QIBs) received a whopping 226.96 times subscription. The non-institutional category was subscribed 121.47 times, and the retail category received 30.98 times subscription. Ahead of the listing, the grey market premium (GMP) suggested a strong listing.
Augmont Enterprises IPO GMP Today
According to Investorgain, the Augmont Enterprises IPO is commanding a grey market premium (GMP) of around Rs 290 today, implying a potential 36.80 per cent premium over the issue price of Rs 788. This means the stock is expected to list at Rs 1,078. However, this is an indicative price, and the listing price may differ.
The IPO has a fresh issue of shares worth Rs 620 crore and an offer-for-sale (OFS) component worth Rs 205 crore. The IPO price band is Rs 750-788 per equity share. At the upper end of the price band, the company will have a post-issue market capitalisation of around Rs 7,200 crore.
How does the company plan to use the proceeds?
The company plans to use the IPO proceeds primarily to fund future working capital needs, including procurement and expansion of inventory, inventory maintenance, advance margin requirements for purchasing inventory, and general corporate purposes.
What does the company do
Augmont Enterprises operates an integrated gold and silver platform serving businesses and consumers across 24 states. Its operations span gold and silver value-chain activities, including procurement and refining, bullion trading, digital gold offerings, jewellery manufacturing, financial services and related technology platforms.
Raised Rs 246 crore from anchor investors
Ahead of the IPO, the public issue raised Rs 246.3 crore from anchor investors. Nomura, HDFC Mutual Fund and Nippon India Mutual Fund were among the lead investors. The company allotted 31.25 lakh equity shares to anchor investors at Rs 788 per share, the upper end of the IPO price band.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
