The initial public offering of Shining Tools Limited, which commenced bidding on November 07, witnessed a subdued reception from the investment community, with the issue achieving only 50 percent subscription on its opening day.
Investor Category Breakdown
The retail investor segment demonstrated relatively stronger interest, with their portion being subscribed at 63 percent. However, Non-Institutional Investors showed more caution, subscribing to only 35 percent of their allocated quota.
The company is looking to raise ₹17 crore through this public offering, which constitutes entirely a fresh issue of 0.15 crore shares. For retail participants, the investment parameters have been established between 2 lots, translating to 2,400 shares requiring an investment of ₹2.73 lakh. High Net Worth Individuals face a minimum and maximum commitment of 3 lots, demanding an investment of ₹4.10 lakh.
Utilization of Proceeds and Timeline
The capital generated from this offering will be channeled toward multiple strategic initiatives. The company plans to allocate funds for the acquisition and installation of plant and machinery specifically for Carbide Precision Tools at their existing facilities. Additionally, the proceeds will support working capital needs and serve general corporate purposes.
The share allotment process is expected to conclude on Wednesday, November 12, with subsequent listing on the BSE SME platform scheduled for Friday, November 14. Sobhagya Capital Options Pvt. Ltd. is managing the offering as the book running lead manager, while Maashitla Securities Pvt. Ltd. is serving as the registrar for the issue.
About Shining Tools Limited
Established in May 2013, Shining Tools Limited has carved a niche in designing and manufacturing high-performance solid carbide cutting tools that serve diverse industrial sectors across India. The company's product portfolio under the "Tixna" brand includes precision instruments such as end mills, drills, reamers, and thread mills.
Beyond manufacturing, the company provides valuable reconditioning services for used tools, effectively extending their lifespan and maintaining performance standards. Shining Tools specializes in creating customized tooling solutions and offers reconditioning services catering to the automotive, engineering, aerospace, and defense industries.
The company's innovative cutting tools find applications in commercial metal cutting operations across various industrial segments, positioning Shining Tools as a significant player in India's manufacturing ecosystem.
Disclaimer: Investors are advised to consult certified financial experts before making any investment decisions regarding this public offering.
