Susan Electricals IPO Sees Strong Investor Demand as Utkal Speciality Remains Undersubscribed on Day Two

Susan Electricals IPO Sees Strong Investor Demand as Utkal Speciality Remains Undersubscribed on Day Two​

The Indian capital markets are seeing a divergent trend amid two major industrial IPOs, with wires and cables maker Susan Electricals garnering significant investor interest. The company’s public issue witnessed a healthy subscription level on the first day of bidding, signaling robust confidence from institutional investors in the manufacturing sector. Meanwhile, Utkal Speciality Industries, which specializes in paper-based products, faced disappointment as its offering remained undersubscribed even by day two.

Susan Electricals IPO Garners High Institutional Interest​

Susan Electricals India has successfully attracted investor attention for its initial public offering. The company is raising Rs 70 crore through the sale of 55.42 lakh shares, offered at a price band of Rs 120-127 per share. Investors responded strongly to the offer, bidding in favor of 2.05 crore equity shares against the total supply.

Qualified institutional buyers (QIB) led the strong interest, subscribing to their allotted quota at 7.01 times. Retail investors and non-institutional investors also showed solid demand, with subscriptions registering at 4.79 times and 3.97 times, respectively.

Allocation of Proceeds Drives Susan Electricals Expansion Plans​

The IPO proceeds are earmarked for strategic growth and operational strengthening. The company plans to use Rs 10.29 crore from the fresh issue allocation towards expanding its existing manufacturing facility located in Ghaziabad, Uttar Pradesh. Additionally, Rs 33 crore will be allocated to working capital requirements, with the remainder designated for general corporate purposes.

Susan Electricals was first incorporated in 2007 and specializes in the production of aluminium and copper-based electrical winding wires, conductors, and cables. The public issue for the company is scheduled to close on June 15.

Utkal Speciality IPO Faces Demand Challenges​

In contrast to Susan’s success, Utkal Speciality Industries India experienced a muted response from investors in its paper-based products offering. This manufacturing firm offered shares with a price band fixed at Rs 62-66 per share and aimed to raise Rs 34.5 crore.

The public issue for the company is slated to conclude on June 12. The offer received an 83 percent subscription, recording 43.46 lakh shares against the offered size of 52.34 lakh shares through 839 applications.

Market Sentiment and Use of Funds in Industrial Offerings​

Both companies have secured significant backing from early investors. Prior to the public listing, Susan Electricals already raised Rs 19.34 crore by issuing 15.23 lakh shares to five anchor investors, including Motilal Oswal Finvest and Sageone.

Utkal Speciality Industries plans to deploy its funds judiciously across core operations. The company intends to use Rs 5.3 crore for working capital requirements and dedicate Rs 9.6 crore towards the purchase of machinery for a new manufacturing facility in Khurda, Odisha. Furthermore, a portion of the proceeds will be used for debt repayment.

Market observers have noted that Susan Electricals IPO shares traded at over a 30 percent premium in the grey market. The grey market premium observed for Utkal Speciality Industries offer shares was reported to be between 15-20 percent. Seren Capital is acting as the merchant banker for Susan Electricals, while Affinity Global Capital Market serves as the book running lead manager for Utkal Speciality Industries.