Automated Parking Tech IPO Smashes Targets: Sotefin Bharat Subscribed at 3.78 Times on Final Day

Automated Parking Tech IPO Smashes Targets: Sotefin Bharat Subscribed at 3.78 Times on Final Day​

Kolkata-based automated parking solutions provider, Sotefin Bharat, saw its Initial Public Offering (IPO) successfully complete a strong subscription run on July 20, the third and final day of bidding. The IPO was fully subscribed 3.78 times across all investor categories, reflecting significant demand for the specialized tech firm.

The offering witnessed sustained interest throughout the three-day bidding period. A total of 1.29 crore equity shares were bid upon, against the offer size of 34.32 lakh equity shares. The successful subscription highlights the growing interest in niche technology providers.

Investor Demand Drives IPO Subscription​

Non-institutional investors (NIIs) and retail investors led the strong response to the IPO, bidding 4.74 times and 3.78 times their respective allotted quotas. Qualified institutional buyers (QIBs) also showed solid backing for the stock, with their portion being subscribed at 2.82 times.

The IPO provided opportunities through 6,046 applications across all categories. This robust demand contrasts with earlier performance, as the offering was subscribed at 81 percent in both previous sessions.

Financial Structure and Anchor Investments​

Sotefin Bharat is raising a total of Rs 89.76 crore through its maiden public issue. The issue comprises entirely a fresh sale of 48 lakh equity shares. The offer opened for subscription on July 17 with a defined price band set at Rs 178-187 per share.

Prior to the IPO, the company had already secured funding. On July 15, Sotefin Bharat raised Rs 25.58 crore by allotting 13.68 lakh shares to anchor investors. This group included Aidos India Fund and Minerva Ventures Fund among others.

Future Strategy: Vertical Integration and Capital Allocation​

Sotefin Bharat is committed to strategic growth following the listing scheduled for July 23. The company plans to use Rs 20.1 crore from the net proceeds to establish a manufacturing facility in Kolkata. Further, capital expenditure of Rs 8.17 crore has been allocated towards setting up a new office premises.

The funds management reflects a significant shift in business focus. Currently, the existing facility handles fabrication and assembly of structural steel components for automated parking systems. The proposed new facility, however, will be dedicated to the in-house manufacturing of robots used in these solutions, which are currently imported internationally.

Rs 40 crore of the proceeds is earmarked to meet working capital requirements, with the remaining amount designated for general corporate purposes. This expansion represents vertical integration rather than merely scaling up existing fabrication capacity, as stated by the company.

Market Observers Note Grey Market Premium Decline​

While the subscription metrics remain highly positive, market observers have noted a shift in premium sentiment surrounding the stock post-subscription. The grey market premium (GMP) for Sotefin Bharat IPO shares has declined from over 10 percent to approximately 2 percent.

The company is expected to finalise the share allotment by July 21. Choice Capital Advisors served as the merchant banker for the maiden public issue of Sotefin Bharat.