Stories
Adroit Industries IPO Soars Over 18x on Day 2, GMP Jumps 25%
- •Adroit Industries (India) IPO received over 18.07 times subscription by the end of Day 2, September 24.
- •The Rs 150.7 crore IPO saw strong demand from non-institutional investors (27.21x) and retail investors (23.43x).
- •Shares of Adroit Industries commanded a 25% premium in the grey market over the IPO price band.
- •The IPO, with a price band of Rs 126-134 per share, opened on September 23 and closes on September 25.
- •Funds from the IPO will be used for machinery procurement, transportation vehicles, and debt repayment for its subsidiary Adroit Driveshafts.
Key Questions Answered
On the second day of bidding, the Adroit Industries IPO was subscribed over 18.07 times, driven by strong demand from non-institutional and retail investors. Meanwhile, its grey market premium (GMP) soared to 25% over the upper end of the price band.
The Adroit Industries IPO aims to raise Rs 150.7 crore with a fixed price band of Rs 126 to Rs 134 per share. The issue comprises a fresh issue of 98.97 lakh shares and an offer for sale of 13.5 lakh shares by the promoter entity Mukesh Sangla HUF.
The company plans to use Rs 63.8 crore from the net fresh issue proceeds to procure machinery and equipment for its Dewas and Pithampur facilities, alongside purchasing transport vehicles. An additional Rs 24.1 crore will go toward repaying debt for its subsidiary, Adroit Driveshafts, with the remainder allocated for general corporate purposes.
