The initial share sale of Astron Multigrain, which commenced on Monday, has received a muted response from investors. At the close of the second day of subscription, the public offer was subscribed 0.91 times, with bids received for 25.10 lakh shares against the total issue size of 27.72 lakh shares.
Subscription Breakdown and Investor Sentiment
A closer look at the subscription data reveals a mixed picture. The portion reserved for retail individual investors (RIIs) saw relatively healthier demand, getting subscribed 1.53 times. However, interest from non-institutional investors (NIIs), which includes high-net-worth individuals, remained very weak, with their segment booked only 0.28 times. This tepid overall subscription indicates cautious market sentiment towards the issue.
Key Details of the Astron Multigrain Public Offer
The company is raising a total of ₹18.40 crore through its initial public offering on the BSE SME platform. The issue is a mix of a fresh issue of 0.23 crore shares aggregating to ₹14.74 crores and an offer for sale (OFS) of 0.06 crore shares worth ₹3.65 crores by existing shareholders.
The price band for the IPO has been fixed at ₹63 per share. With a market lot size of 4,000 shares, the minimum investment amount required for retail investors stands at ₹252,000. The company intends to use the net proceeds from the fresh issue for purchasing new machinery, meeting working capital needs, and for general corporate purposes.
Important Dates and Listing Information
The allotment of shares for the Astron Multigrain IPO is expected to be finalized on Thursday, December 04. The company will initiate the refund process for unsuccessful applicants on Friday, December 05. On the same day, following the refunds, the shares will be credited to the demat accounts of successful allottees.
The tentative listing date for the shares on the BSE SME platform is Monday, December 08. 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.
Grey Market Premium and Company Background
In a sign of weak pre-listing sentiment, market sources indicate that the grey market premium (GMP) for Astron Multigrain is currently nil. This suggests the stock might list on the exchanges at its issue price or potentially at a discount.
Established in 2018, Astron Multigrain is engaged in the manufacturing of instant noodles. The company operates on a contract manufacturing basis for Gokul Snacks Private Limited, whose products are made by Astron. Additionally, it manufactures and sells noodles under its own brand name, 'Astron's Swagy Noodles'.
