Ceramic Tableware Maker Clay Craft India IPO Surges on Day Two, Attracting Near 8x Investor Demand
Clay Craft India’s Initial Public Offering (IPO) is seeing robust investor enthusiasm as of its second day of bidding. The company, a specialist in ceramic tableware products, has been offered at a price band ranging from Rs 193 to Rs 203 per share. Investors have responded strongly, subscribing the offer by 7.84 times across all categories as of April 18.The IPO offers investors an opportunity through an entirely fresh issue totaling 54.24 lakh shares. Clay Craft India is raising a total of Rs 110.1 crore via this initial share sale. The offering remains open to the public until June 19, providing ample time for interested participants to participate in this market debut.
Strong Investor Demand Across Categories
The healthy participation has been evident across various investor segments. Non-institutional investors (NIIs) were the leading participants, bidding at a rate of 13.5 times their allotted quota. Retail investors subscribed the offer by 8.1 times, while Qualified Institutional Buyers (QIBs) saw subscriptions reach 5.18 times.Anchor Investor Participation and Financial Mobilization
The company has already secured significant commitments from anchor investors. A total of Rs 31.33 crore has been mobilized through the issuance of 15.43 lakh shares to 18 pre-identified anchor investors. The list includes prominent firms such as Motilal Oswal Finvest, Sanshi Fund, Small Industries Development Bank of India, and Tiger Strategies Fund.IPO Proceeds Allocation and Future Expansion Plans
The funds raised from the IPO are earmarked for substantial corporate growth initiatives. Clay Craft India intends to utilize Rs 97 crore of the proceeds specifically for establishing an additional manufacturing facility in Manda, Rajasthan. The remaining IPO funds will be directed towards general corporate purposes.The company currently operates manufacturing facilities in Jaipur and Manda, Rajasthan, boasting a combined installed capacity of 6,000 MT. Management has confirmed that through the proposed expansion funded by the IPO proceeds, the existing installed capacity is expected to increase by approximately 4,000 MT.
Performance of Concurrent IPOs
The bidding process for other offerings remains active alongside Clay Craft India’s IPO. The public issue of Leapfrog Engineering Services was subscribed 1.83 times on the second day. Similarly, Diksha Polymers and Liotech Industries received subscriptions of 1.65 times and 61 percent, respectively. All three IPOs are slated to close simultaneously on June 19.Meanwhile, Riyaasat Lifestyle’s initial share sale recorded a 11 percent subscription on the first day, with its offering set to conclude by June 22. Hem Securities is managing the Clay Craft India IPO as the book running lead manager.
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