Arrowhead Seperation Engineering, a manufacturer of industrial drying equipment, has opened its initial public offering (IPO) for subscription today. The IPO, which is scheduled to run from Thursday to Monday, November 20, is aiming to raise ₹13 crore by offering 558,000 equity shares at a price of ₹233 per share.
The company's range of products includes vacuum double drum dryers, rotary dryers, and continuous particulate dryers. With a history dating back to 1991, Arrowhead has established itself in the production and distribution of various dryers and also engages in import activities. The firm has reported a significant revenue increase of 98.91% to ₹21.71 crore (INR10 crore = approx. USD1.2 million) in FY23 and a modest profit after tax rise of 1.69%.
Investors interested in participating in this IPO can bid for a minimum of 600 shares. This sets the investment threshold for retail investors at ₹1,39,800 and double that amount for high net-worth individuals (HNIs) who wish to acquire two lots. Despite the IPO's opening, the grey market premium (GMP) stands at ₹0, indicating that the shares are trading at their issue price with no expected listing gain at the moment.
Arrowhead's promoters, Ajit and Jyoti Mundle, have positioned the company among its listed peers such as Kilburn Engineering Ltd and Praj Industries Ltd. The proceeds from the IPO are earmarked for several purposes including addressing working capital needs, repaying non-banking financial company (NBFC) loans, and funding general corporate activities.
Aryaman Financial Services Limited is managing the book running process for the IPO, while Cameo Corporate Services Limited serves as the registrar. Aryaman Capital Markets has been appointed as the market maker for this public offering.
The listing of Arrowhead Seperation Engineering is set to take place on Tuesday, November 29 on the BSE SME platform.
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