Highness Microelectronics IPO Sees Overwhelming Demand, Registers 8.13 Times Subscription on Second Day

Highness Microelectronics Sees Strong IPO Demand

Highness Microelectronics, a digital-imaging solutions provider, has received a strong response for its initial public offering (IPO) from investors. As of March 25, the second day of bidding, the IPO has seen a massive 8.13 times subscription.

The company is raising Rs 21.67 crore via the IPO, which comprises a fresh issue of 16.53 lakh shares worth Rs 19.84 crore and an offer-for-sale of 1.52 lakh shares amounting to Rs 1.82 crore by promoters. The price band for the offer is Rs 114-120 per share.

The IPO attracted demand for 1.05 crore shares from investors against the offer size of 12.94 lakh shares, with 3,537 applications submitted. Retail and non-institutional investors led the demand, bidding 12.25 times and 8.97 times their allocated quota, respectively. Meanwhile, the portion set aside for qualified institutional buyers was subscribed 4 percent.

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Prior to the public offering, Highness Microelectronics raised Rs 6.13 crore by issuing 5.11 lakh shares to three anchor investors - Shine Star Build-Cap, Saint Capital Fund, and Vikasa India - at the upper price band on March 23.

The company's shares are trading at a 24 percent premium in the grey market. The public offer will remain open till March 27. Highness Microelectronics intends to utilize the fresh issue proceeds for setting up an assembly line at its factory in Mumbai, working capital requirements, repayment of borrowing, and general corporate purposes.

The merchant banker managing the Highness Microelectronics IPO is Fintellectual Corporate Advisors.