The Gaja Alternative Asset Management IPO is in its second day of bidding on Thursday, August 20, with investors having subscribed to 86 per cent of the issue on the opening day.
The Rs 550-crore public issue, which began on Wednesday, August 19, is scheduled to close on Friday, August 21. The IPO comprises a fresh issue of Rs 450 crore and an offer for sale (OFS) of shares worth up to Rs 100 crore by existing shareholders, including promoters.
Investors are also tracking the issue's grey market premium (GMP), which stood at Rs 23 on Thursday.
Gaja Alternative Asset Management IPO GMP: What It Indicates
At the upper end of the IPO price band of Rs 160 per share, the current GMP of Rs 23 suggests an estimated listing price of Rs 183, reported Livemint.
This implies a potential premium of 14.37 per cent over the IPO's upper price band.
According to market experts, the IPO's GMP has remained positive in recent sessions, moving between Rs 0 and Rs 30 over the past week.
However, the grey market is unofficial, and the prevailing premium should not be treated as a guarantee of the actual listing price.
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IPO Subscription: Retail Investors Lead On Day 1
The issue received bids for 2,16,60,258 shares against the 2,53,28,946 shares available for subscription on Wednesday, according to NSE data.
Retail investors subscribed to 1.20 times their reserved portion, making their category fully subscribed on the first day. The NII portion received 1.06 times subscription.
Institutional participation was comparatively lower, with the QIB category recording 9 per cent subscription at the end of Day 1.
The subscription figures will be updated as bidding continues on Thursday and Friday.
Gaja IPO: Price, Lot Size And Reservation
The company has fixed the IPO price band at Rs 152-Rs 160 per equity share. Investors can bid for a minimum of 93 shares, with subsequent bids placed in multiples of the same lot size.
The QIB category has been allocated up to 50 per cent of the issue size. At least 15 per cent has been reserved for NIIs, while retail investors have a minimum reservation of 35 per cent.
Where Will The IPO Money Go?
The company plans to use Rs 372 crore from the fresh issue towards sponsor commitments for certain existing and new funds and to repay a bridge loan.
The remaining proceeds are earmarked for general corporate purposes.
JM Financial and IIFL Financial Services are acting as merchant bankers for the public issue.
Rs 165 Crore Raised From Anchor Investors
Ahead of the IPO opening, Gaja Alternative Asset Management raised Rs 165 crore through its anchor book on Tuesday.
A BSE filing showed that nearly 1.03 crore equity shares were allotted to anchor investors at Rs 160 apiece, which is the top end of the IPO price band.
Nippon India Mutual Fund and Invesco Mutual Fund invested Rs 30 crore each, making them the largest participants in the anchor allocation. HDFC Life and SBI Life were among the other institutional investors that participated.
The anchor book also included investments from Akash Bhansali through Winro Commercial (India) Ltd, Mukul Agarwal through Sanshi Fund I and Ashish Kacholia through Bengal Finance.
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Gaja IPO Allotment, Listing Dates
The basis of allotment is expected to be finalised on Monday, August 24.
Refunds are likely to start on Tuesday, August 25, while shares allotted to successful applicants are expected to be credited to their demat accounts on the same day.
The company's shares are scheduled to make their debut on both the BSE and NSE on Wednesday, August 26.