Highness Microelectronics IPO Experiences Record Subscription, Awaits GMP Approval and Listing Date
Highness Microelectronics Sees Robust Demand in Maiden IPO
Highness Microelectronics, a digital imaging and display solutions provider, has seen overwhelming demand from investors in its initial public offering (IPO). The IPO, which closed on March 27, attracted bids for 23.34 crore shares, a 108.33 times higher subscription than the offer size of 12.94 lakh shares.
The IPO issue comprised a fresh issue of 16.53 lakh shares and an offer-for-sale of 1.52 lakh shares, priced between Rs 114-120 per share. The company aims to raise Rs 21.67 crore through the IPO. Non-institutional and retail investors led the subscription, with 268.13 times and 185.11 times demand, respectively. Qualified institutional buyers also subscribed 81.95 times to the offer.
The grey market has seen Highness Microelectronics IPO shares trading at a 20 percent premium. The IPO share allotment is expected to be finalized by March 30, with trading on the BSE SME commencing on April 2.
Highness Microelectronics designs, develops, assembles, and manufactures digital imaging solutions, including thin film transistor and liquid crystal display (LCD) module, display controllers, and electroluminescent displays. The company plans to utilize the IPO proceeds for setting up an assembly line in Mumbai (Rs 5.26 crore), working capital requirements (Rs 6.7 crore), repayment of borrowing (Rs 1.89 crore), and general corporate purposes.
The sole merchant banker managing the Highness Microelectronics IPO is Fintellectual Corporate Advisors.
Investor Takeaway
Investors should be cautious of the high subscription ratio and potential market volatility.
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