Nanta Tech Ltd made its stock market debut on Wednesday, December 31, with its shares listing at a premium on the BSE SME platform. The audio-visual solutions provider saw its stock open at ₹234 per share, marking a gain of 6.36% over its issue price of ₹220.
Listing Performance Versus Market Expectations
While the listing was in positive territory, it fell short of the grey market's bullish predictions. In the unofficial grey market, the IPO had commanded a premium (GMP) of ₹20 per share. This had indicated a potential listing price of around ₹240, which would have been a 9% premium over the upper end of the issue price band. The actual debut at ₹234, therefore, represented a slightly more modest beginning for the newly listed equity.
Strong Investor Demand During Subscription
The public offering, which was open for subscription from December 23 to December 26, witnessed robust demand from investors. Overall, the IPO was subscribed 6.43 times the shares on offer. A closer look at the category-wise subscription reveals where the strongest interest lay.
Qualified Institutional Buyers (QIBs) led the charge, aggressively bidding for the issue. Their portion was subscribed a massive 12.98 times. Non-institutional investors (NIIs) also showed significant appetite, subscribing their allotment 7.03 times. The retail investor segment was subscribed 2.91 times.
In total, the company received bids for 64.30 lakh shares against the 9.99 lakh shares that were on offer to the public.
IPO Details and Use of Proceeds
The Nanta Tech SME IPO was a fresh issue of 14 lakh equity shares, aggregating to ₹31.81 crore. There was no offer-for-sale component, meaning no existing shareholders sold their stakes. The price band for the offer was set between ₹209 and ₹220 per share.
According to the company's Red Herring Prospectus (RHP), the net proceeds from the issue will be primarily used for capital expenditure to set up an experience centre-cum-product display facility. A part of the funds is earmarked for meeting working capital requirements, with the remainder allocated for general corporate purposes.
For retail investors, the lot size was 600 shares. This meant the minimum application amount, at the upper price band of ₹220, was ₹1,32,000 for one lot, with the ability to bid for multiples thereof.
Anchor Investment and Allotment Structure
Ahead of the public issue, Nanta Tech raised ₹7.92 crore from anchor investors on December 22. The company allotted 3.60 lakh shares to these investors at the upper price band of ₹220 per share.
The allocation for the public issue was heavily skewed towards institutional investors. QIBs were reserved 42.24% of the net issue (6,10,800 shares), while retail investors got 33.10% (5,07,600 shares). Non-institutional investors (NIIs) were allocated 16.68% (2,41,200 shares) of the offering.
Smart Horizon Capital Advisors Private Limited managed the book-running for the issue, and Bigshare Services Private Limited was the registrar.
About Nanta Tech Ltd
Incorporated in 2023, Nanta Tech operates in the audio-visual (AV) integration sector. The company provides a comprehensive suite of services including AV product supply and distribution, service robots, and software development. Its end-to-end solutions cover system design, integration, management, and on-site support.
The company caters to a diverse clientele across corporate, education, hospitality, and manufacturing sectors, positioning itself as a one-stop solution provider from project conceptualization to execution and ongoing support.
