New Delhi, March 24 Electromechanical solutions provider Vivid Electromech secured over Rs 37 crore from anchor investors on Tuesday, a day before its initial public offering (IPO) opens for subscription on the NSE Emerge.
Shares were allocated to nine entities, including Motilal Oswal Finvest, Mukul Agrawal's Sanshi Fund - I, India Max Investment, and Rajasthan Global Securities, according to the release.
The company finalized the allocation of 6,68,880 shares to anchor investors at Rs 555 per share. The total allocation amounts to approximately Rs 37.12 crore.
Vivid Electromech's maiden public offering of Rs 130.54 crore will open for subscription on March 25 and conclude on March 30.
The price band has been fixed at Rs 528-555 per share. At the upper end of the price band, the company will raise Rs 130.54 crore.
The IPO comprises a fresh issue of 18.84 lakh equity shares and an offer for sale of up to 4.68 lakh shares by promoters, according to the red herring prospectus (RHP).
The net proceeds from the IPO will be used to set up a new manufacturing unit in Ambernath, repay debt, meet working capital requirements, and for general corporate purposes.
"The proposed investment in a new manufacturing facility will significantly enhance our production capacity, improve operational efficiency, and enable us to undertake larger and more complex turnkey projects," said Sameer Vishvanath Attavar, Chairman & MD of Vivid Electromech Ltd.
This expansion will also help reduce execution timelines, improve cost efficiencies, and strengthen our ability to service multiple large orders simultaneously, he added.
Vivid Electromech is engaged in the manufacturing of low voltage and medium-voltage electric panels and provides system integration services primarily to data centers, metro projects, and the solar and renewable energy sectors.
The company's shares will be listed on the NSE Emerge.
HEM Securities is the sole book-running lead manager, and MUFG Intime India is the registrar for the public issue.
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