Amir Chand IPO Posts Strong 90% Subscription Rate on Day 1, NII Portion Fully Subscribed

Amir Chand Jagdish Kumar (Exports) IPO Sees Robust Subscription

The initial public offering (IPO) of Amir Chand Jagdish Kumar (Exports), a Haryana-based basmati rice exporter, has received a robust subscription on its first day of share sale in the primary market. As of 3:05 pm on the first day, the Rs 440-crore IPO has been booked at 90 percent, with bids received for 1.69 crore shares against 1.89 crore shares on offer.

Subscription Breakdown

• QIBs (Qualified Institutional Buyers): 54 percent subscription
• RIIs (Retail Individual Investors): 25 percent subscription
• Non-Institutional Investors: 3.27 times subscription

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Anchor Investor Mobilization

Prior to the IPO, the company mobilized Rs 60 crore from anchor investors on Monday. The Rs 440 crore maiden public offering opened for subscription on March 24 and will conclude on March 27. The price band has been set at Rs 201-212 per share, valuing the company at Rs 2,200 crore.

Grey Market Premium

The shares of Amir Chand are commanding a grey market premium (GMP) of up to 3 percent in the unofficial market. According to Investorgain, the GMP is Rs 6, indicating a listing gain of 2.83 percent. IPO Watch quoted a GMP of 3.3 percent.

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Utilization of IPO Proceeds

The company plans to utilize the net proceeds from the issue to fund its working capital requirements and for general corporate purposes.

Company Overview

Amir Chand Jagdish Kumar (Exports) is a processor and exporter of basmati rice in India, marketing its products under the flagship brand "Aeroplane". The company competes with large basmati rice companies, including KRBL Ltd, LT Foods, and Sarveshwar Foods, as well as various unorganized processors. The company has also diversified into FMCG products, offering staples and other essential kitchen items.

Listing Date

The basmati rice exporter will make its stock market debut on April 2.