Sedemac Mechatronics IPO Sees 2.7x Subscription on Final Day, GMP Plunges
Sedemac Mechatronics Ltd IPO Achieves Full Subscription
Overview
Sedemac Mechatronics Ltd, a Pune-based manufacturer of powertrain controls and auto parts, successfully achieved full subscription for its initial public offering (IPO) on Friday, March 6. This milestone was achieved despite a sharp decline in the grey market premium (GMP) to ₹-18 from ₹55 on March 4.
Subscription Details
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The IPO attracted bids for 151,10,909 shares, against the total offer of 56,32,899 shares, resulting in 2.68 bids. The subscription breakdown by category is as follows:
- Qualified Institutional Buyers (QIBs): 8.46 times bids
- Non-institutional investors: 77% subscribed
- Retail Individual Investors (RIIs): 20% subscribed
- Employees: 2.95 times subscription
IPO Details
The IPO, valued at ₹1,087 crore, opened for bidding on Wednesday with a price band of ₹1,287 to ₹1,352 per share, valuing the company at nearly ₹6,000 crore at the upper end. The company has already secured ₹326 crore from anchor investors.
Read also: Zepto Nears $1 Billion Quarterly Net Order Value Milestone Before IPO
Grey Market Premium (GMP)
At the current GMP of ₹-18, the listing price of Sedemac Mechatronics IPO could be ₹1,334, down 1.33%.
Listing Date
The shares of Sedemac Mechatronics are slated to list on BSE and NSE on March 11.
Management Team
The IPO is being managed by ICICI Securities, Avendus Capital, and Axis Capital, who are the book-running lead managers for the offer.
Investor Takeaway
Investors should be cautious of the grey market premium and wait for the actual listing price before making any investment decisions.
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