Shares of Pennar Engineered Building Systems and Shree Pushkar Chemicals & Fertilisers will list tomorrow on BSE and NSE. In separate statements on the BSE, it was revealed that both stocks will be listed under ‘T’ group of securities. Last month, Pennar Engineered Building Systems and Shree Pushkar Chemicals & Fertilisers raised a combined INR221 crore through the IPOs which saw moderate level of subscription amid immense market volatility.
Read Also: Pennar Engineered Building Systems and Shree Pushkar IPOs sail through
Pennar Engineered Building Systems, a subsidiary of Pennar Industries Limited, received a subscription of 1.15 times. The pre-engineered buildings player raised INR46.8 crore by placing 26.32 lakh shares with anchor investors. In total, the company mobilized INR151.77 crore and offered exit route to existing investors including private equity player Zephyr Peacock, Ramani Potluri and Vikram Chachra. Out of the total INR58 crore from issue of fresh shares, INR34 crore will be used to lower interest costs by paying back loans while the rest will be used to purchase software and hardware and general corporate purposes.
Read Also: IPO Review: Zephyr-backed Pennar Engineered Building Systems IPO opens on 25 August
On the other hand, Shree Pushkar Chemicals & Fertilisers was one of the smallest IPOs this year in India, raising only INR70 crore through a combination of fresh shares and an offer for sale. Unlike most other companies, Shree Pushkar Chemicals & Fertilisers did not engage anchor investors and its IPO received a total subscription of 1.33 times. The company, which produces a wide range of dye intermediates, cattle feed supplement and fertilizers, plans to use the funds for acquisition of a factory and setting up production and effluent treatment plants. The biggest chunk of IPO proceeds will be used towards setting up a new facility for production of reactive dyes, H-Acid, and Vinyl Sulphone. The company plans to invest INR41.6 crore in this regard while INR4.9 crore will be used towards establishing an effluent treatment plant at its existing facility.
Read Also: IPO Review: Shree Pushkar Chemicals & Fertilisers’ IPO opens on 25 August
Both IPOs received positive reviews from analysts and considering the positive listing of Navkar Corporation, despite its stretched valuations, the new listings can make use of the tailwinds in the secondary market.
