Tipco Engineering India IPO Sees 1.56 Times Subscription, Allotment and Listing Details Available

Tipco Engineering India's IPO Attracts Decent Demand

Tipco Engineering India, a leading manufacturer of fluid and powder machinery, has seen a decent response to its initial public offering (IPO). The issue closed with a subscription of 1.56 times on March 25, exceeding the company's expectations.

The IPO, which was priced at the upper end of the Rs 84-89 per share band, raised Rs 60.55 crore through the sale of 68.03 lakh shares. The issue comprised a fresh issue of 54.48 lakh shares worth Rs 48.48 crore and an offer-for-sale of 13.55 lakh shares worth Rs 12.06 crore by promoter Ritesh Sharma.

The response to the IPO was led by non-retail investors, who bid for 79.31 lakh shares against the issue size of 50.83 lakh shares. The portion of the issue reserved for qualified institutional buyers was subscribed 3.2 times, while the non-institutional investor portion was subscribed 1.52 times and the retail portion was subscribed 66%.

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Tipco Engineering India plans to utilise the net proceeds from the fresh issue to repay certain borrowings (Rs 30 crore), meet its working capital requirements (Rs 7.66 crore), and for general corporate purposes. The company has already raised Rs 15.3 crore by allocating 17.2 lakh shares to four anchor investors at the upper price band.

The IPO share allotment is expected to be finalised by March 27, while the participants can start trading in Tipco Engineering shares on the BSE SME from April 1. Smart Horizon Capital Advisors has acted as the merchant banker for the IPO.