Swastika Infra IPO Fully Subscribed on Day 2, NII Portion Booked 2.12 Times

Swastika Infra’s initial public offering crossed the full-subscription mark on the second day of bidding, with investors placing bids for more shares than were available in the ₹161-crore public issue. 

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As of 12:30 pm on September 24, the IPO had been subscribed 1.24 times, according to NSE data cited by Moneycontrol. Investors had bid for 78.71 lakh shares against 63.35 lakh shares on offer. 

Non-institutional investors were leading the demand at that stage of the bidding process, while the retail portion had also moved past full subscription. 

Non-institutional investors lead bidding 

The portion reserved for non-institutional investors was subscribed 2.12 times by 12:30 pm on the second day. 

Retail investors had subscribed their allocated portion 1.18 times. 

The IPO had ended its first day with an overall subscription of 96%, before crossing the full-subscription mark during the following session. 

Bidding for the issue began on September 23 and will close on September 25. 

IPO priced at ₹175-185 per share 

Swastika Infra has set a price band of ₹175 to ₹185 per share for the public issue. 

The ₹160.88-crore IPO comprises a fresh issue worth around ₹128.5 crore along with an offer for sale of up to 17.5 lakh shares by promoters and other shareholders. 

Of the proceeds from the fresh issue, ₹90 crore is proposed to be used to meet incremental working capital requirements. The remaining amount is intended for general corporate purposes. 

The shares are scheduled to list on both the BSE and NSE on September 30. 

Grey market premium at around ₹6 

Swastika Infra shares were trading at a grey market premium of around ₹6 on September 24, according to InvestorGain data cited in the report. 

Against the upper end of the IPO price band of ₹185, the premium works out to about 3.24%. 

The grey market premium is an unofficial indicator and does not determine or guarantee the price at which shares will eventually list on the exchanges. 

Swastika Infra raised ₹48.26 crore from anchor investors 

Before opening the IPO for public subscription, Swastika Infra raised ₹48.26 crore from six anchor investors. 

The company allotted 26.08 lakh shares to anchor investors on September 22 at ₹185 apiece, the upper end of the IPO price band. 

Shine Star Build-Cap, Minerva Ventures and Longthrive Capital VCC each invested ₹10 crore and received 5.4 lakh shares. 

Krone Finstock invested ₹8.25 crore for 4.46 lakh shares. Swyom India Alpha Fund and Asas Global Fund Incorporated VCC Sub Fund each invested ₹5 crore and received 2.7 lakh shares. 

Swastika Infra operates in power EPC segment 

Rajasthan-based Swastika Infra is an engineering, procurement and construction company focused on power transmission and distribution infrastructure projects. 

Its work covers different stages of power projects, including conceptualisation, design, supply, installation, testing and commissioning on a turnkey basis. 

Srujan Alpha Capital Advisors LLP and PhillipCapital (India) are the merchant bankers handling the IPO. 

With one day of bidding remaining, the issue had received bids for 1.24 times the shares available as of 12:30 pm on September 24, led by demand from the non-institutional investor category.