Anubhav Plast IPO Closes with 2.1x Subscription: Retail Investors Lead Rally as SME Listing Date Set
The initial public offering (IPO) of ERW steel pipes and tubes manufacturer Anubhav Plast concluded on June 23rd, witnessing a healthy subscription level. The company successfully raised Rs 24 crore through the issuance of 30 lakh shares at the upper end of the price band, which was set between Rs 77 and Rs 80 per share.The total issue comprising entirely a fresh issue aims to capitalize on expanding corporate needs while serving key infrastructure sectors. Investors collectively bid for 44.97 lakh shares during the three-day bidding period. This figure represents a robust 2.1 times subscription against the offer size of 21.52 lakh shares, supported by 910 applications.
##IPO Subscription Breakdown and Investor Demand
Retail investors were the primary drivers of the demand for Anubhav Plast’s IPO. These retail applicants bid at a strong 2.6 times their allotted quota. Furthermore, portions reserved for non-institutional investors (NIT) and qualified institutional buyers (QIB) were also subscribed successfully. The NIT portion achieved a subscription of 2.1 times, while the QIB segment secured 1.23 times the offer size.
##Anchor Book Allocation Details Revealed
The IPO’s pre-market activity included an anchor book allocation on June 18th. This allocation saw Rs 6.78 crore raised through 8.48 lakh shares. Craft Emerging Market Fund and Longthrive Capital were the sole participants in this institutional segment prior to the public opening of the bidding process.
##Timeline for Allotment and BSE SME Listing
The company will finalize the share allotment on June 24th, according to the merchant banker's timeline. Successful applicants are set to begin trading the shares starting from the BSE SME platform on June 26th. Market observers have noted that the IPO did not attract any premium in the grey market.
##Use of Proceeds and Business Focus
Anubhav Plast manufactures ERW steel pipes, tubes, and hollow sections under the ANUBHAV brand. These products serve critical infrastructure areas including electricity transmission and distribution, construction, street lighting, and telecom infrastructure. The company operates two manufacturing units situated in Kanpur Dehat, Uttar Pradesh.
A significant portion of the IPO proceeds is earmarked for future expansion. Rs 2.2 crore from the raised amount will be utilized to set up a new facility within existing premises. This new unit will focus on manufacturing crash barriers and solar panel structures.
##Financial Utilization Plan and Corporate Structure
The allocation plan outlines clear usage for the capital infusion. Beyond the infrastructure development, Rs 13.75 crore of the IPO proceeds will be dedicated to meeting working capital requirements. The remaining funds are designated for general corporate purposes. CapitalSquare Advisors is serving as the merchant banker for the Anubhav Plast IPO.
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