The initial public offering (IPO) of Astron Multigrain, which commenced its subscription process on December 01, has witnessed a steady inflow of investor interest. As the bidding entered its second day, the public issue managed to attract bids for a significant portion of the shares on offer, indicating a positive market reception for the instant noodle manufacturer.
Subscription Figures and Investor Breakdown
By the conclusion of the second day of the offer, the overall subscription status for the Astron Multigrain IPO stood at 0.74 times. In concrete terms, investors bid for approximately 19.72 lakh shares against the total issue size of 27.72 lakh shares available for subscription. A closer look at the category-wise data reveals a particularly strong appetite from individual investors. The portion reserved for retail investors was oversubscribed, receiving applications for 1.10 times the allotted quota. Meanwhile, the segment for non-institutional investors (NIIs) saw a subscription level of 0.32 times at this stage.
Key Details of the ₹18.40 Crore Public Offer
The IPO is a mix of fresh issuance of shares and an offer for sale by existing promoters. The company is issuing fresh equity worth ₹14.74 crores, comprising 0.23 crore new shares. Concurrently, there is an offer for sale component of 0.06 crore shares, aggregating to ₹3.65 crores. The company has set a price band of ₹63 per share for the offer. For retail investors, the minimum investment required is substantial due to the lot size; one lot consists of 4,000 shares, translating to a minimum application amount of ₹252,000.
The proceeds from the fresh issue are earmarked for specific growth initiatives. The company plans to utilize the funds for purchasing new machinery, meeting working capital requirements, and for general corporate purposes.
Timeline, Listing, and Grey Market Sentiment
The entire process for the IPO is on a fast track. The allotment of shares is expected to be finalized on Thursday, December 04. Following this, the company will initiate refunds for unsuccessful applicants on Friday, December 05. On the same day, after the refund process, the shares will be credited to the demat accounts of successful allottees. The tentative listing date on the BSE SME platform is Monday, December 08.
In the unofficial grey market, shares of Astron Multigrain are reportedly commanding a premium. Market sources indicate a grey market premium (GMP) of ₹12. This suggests that the stock is anticipated to debut on the exchanges at around ₹75 per share, which would represent a premium of approximately 19% over the issue price of ₹63.
Finaax Capital Advisors Private Limited is acting as the book-running lead manager for the issue, while Bigshare Services Pvt. Ltd. is the registrar. The market maker for the company is Prabhat Financial Services Ltd.
About Astron Multigrain
Established in 2018, Astron Multigrain is engaged in the manufacturing of instant noodles. The company operates on a dual model. It undertakes contract manufacturing for Gokul Snacks Private Limited, producing noodles that are sold under Gokul's brand name. Additionally, the company manufactures and sells noodles under its own brand, "Astron's Swagy Noodles".
