MUMBAI - Arrowhead Seperation Engineering Limited, a company specializing in the manufacturing and distribution of various dryers, has witnessed a robust response to its initial public offering (IPO), with the subscription reaching four times the shares on offer on the first day. The IPO, which opened at ₹233 per share, has attracted significant interest from retail investors and non-institutional buyers alike.
The ₹13 crore IPO, which commenced on Thursday, is a fresh issue of 558,000 equity shares. There is no offer for sale (OFS) component involved in this public offering. Aryaman Financial Services is serving as the lead manager for the IPO, with Cameo Corporate Services appointed as the registrar. The funds raised from this IPO are earmarked for several key areas including meeting working capital requirements, repaying non-banking financial company (NBFC) loans, and other general corporate purposes.
Retail investors have shown considerable enthusiasm for Arrowhead's market debut, oversubscribing their portion by 7.05 times. Non-institutional buyers have also signaled strong confidence, subscribing to 97% of their allocated shares. The company's shares have been trading at a grey market premium of ₹75, suggesting an anticipated listing price of ₹308.
Investors had the opportunity to bid for a minimum of 600 shares during the subscription period that closed on Monday. With each share having a face value of INR10, the issue price stands at 23.3 times this value.
Arrowhead Seperation Engineering's commitment to delivering high-quality products that meet customer expectations has been a cornerstone of its business model. Their product lineup includes Totally Enclosed Single Drum Dryers and Continuous Particulate Dryers among others, catering to a diverse range of drying needs.
The company's IPO comes amid a busy period for public listings in India's capital markets. Tata Technologies' IPO is set to open on November 22, while Sunrest Lifescience has recently finalized its IPO allotment. Furthermore, ROX Hi-Tech Limited enjoyed a strong debut, whereas Baba Food Processing had a more subdued start. Kilburn Engineering Ltd and Praj Industries Ltd are among Arrowhead Seperation Engineering's listed peers in this sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.