Emiac Technologies IPO Exceeds Subscription Target, Public Issues Underperform

Digital Marketing Solutions Provider Emiac Technologies Sees Strong IPO Response

Emiac Technologies, a digital marketing solutions provider, has seen its initial public offering (IPO) subscribed up to 96 percent, according to the latest data available. This is in contrast to the public issue of engineering enterprise Safety Controls and Devices, which has been booked at 30 percent as of April 6.

The two IPOs are the only ones available for subscription in the SME segment this week. Emiac Technologies aims to raise Rs 31.75 crore via an initial public offering of 32.4 lakh shares at the upper end of the price band of Rs 93-98 per share.

The offer, launched on March 27 and remaining open until April 8, saw bids for 22.58 lakh shares against an issue size of 23.52 lakh shares through 474 applications. The issue saw a decent response from all categories of investors, with qualified institutional buyers picking up 1.02 times their allotted quota. The portions set aside for retail and non-institutional investors were subscribed 97 percent and 89 percent, respectively.

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Emiac Technologies, which helps brands adopt new go-to-market strategies, has already raised Rs 8.7 crore by issuing 8.88 lakh shares to three anchor investors - Abundantia Capital, Rajasthan Global Securities, and AmitSG Venture Fund. The digital marketing services provider intends to utilize the proceeds from its IPO for the purchase of computers, laptops, and other related accessories, as well as software subscriptions and cloud hosting. Further, the funds will also be used for working capital requirements, hiring manpower, branding, advertising and marketing activities, and general corporate purposes.

The public issue of Safety Controls & Devices, which will remain open for subscription until April 8, garnered bids for 13.42 lakh shares against an IPO size of 44.16 lakh shares through 308 applications. Retail investors bid for 46 percent of their allotted quota, while the portions set aside for qualified institutional buyers and non-institutional investors saw subscriptions of 21 percent and 13 percent, respectively.

The engineering, procurement, and construction (EPC) company, which focuses on the installation of substations, construction of solar plants, and installation of firefighting equipment, aims to raise Rs 48 crore through its maiden public issue of 60 lakh shares. The price band for the offer has been fixed at Rs 75-80 per share. Of this, it has already mobilized Rs 12.67 crore by allocating 15.84 lakh shares to four anchor investors - Shine Star Build-Cap, Vbcube Ventures Fund, PSEB Alpha Fund, and Upsurge Opportunities Fund - on April 2.

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Safety Controls & Devices will utilize the IPO proceeds mainly for the repayment of borrowings and working capital requirements. The remaining funds will be used for general corporate purposes. The IPOs are being managed by Smart Horizon Capital Advisors for Emiac Technologies and Sobhagya Capital Options for Safety Controls & Devices.