Susan Electricals IPO Surges to 192 Times Subscription as Demand Roars for Wires and Cables Maker
The market witnessed immense fervor on June 15 as Susan Electricals India's Initial Public Offering (IPO) crossed a significant milestone, achieving a massive subscription ratio of 192.06 times. The demand demonstrated across all investor segments, underscoring strong interest in the wires and cables sector. The company, which manufactures aluminium and copper-based electrical winding wires and conductors, successfully mobilized capital through the public issue.IPO Subscription Details Drive High Demand
The overall IPO saw significant enthusiasm, with a total of 77.18 crore equity shares bid for against an offer size of 40.19 lakh equity shares. The subscription was clocked at 2.27 applications during the bidding period spanning June 11 to June 15. Retail and non-institutional investors led the charge in boosting the remarkable subscription numbers.The retail segment showed robust interest, subscribing their allotted quota 207.56 times. Non-institutional investors were equally enthusiastic, achieving a subscription rate of 210.55 times. Furthermore, the portion dedicated to qualified institutional buyers (QIB) was subscribed at an impressive 142.65 times, indicating broad market confidence.
Grey Market Premium and Listing Timeline Set
Observers noted that Susan Electricals India IPO shares commanded a healthy grey market premium of more than 40 percent. This strong pre-listing performance suggests highly optimistic sentiment surrounding the company's growth trajectory in the competitive electrical manufacturing space.The official timeline for the listing has been set by Seren Capital, which is acting as the merchant banker. The company is slated to finalize the IPO share allotment on June 16. Trading of its equity shares will commence on the BSE SME platform on June 18.
Company Offer Structure and Financial Utilization
Susan Electricals India is raising a total of ₹70.4 crore through the public issue of 55.42 lakh shares, which are offered at the upper end of the price band set between Rs 120 and Rs 127 per share. The IPO composition includes a fresh issue of 47.42 lakh shares and an offer-for-sale (OFS) comprising 8 lakh shares from promoter Vishal Jain.Prior to the public subscription, on June 10, the company secured ₹19.34 crore through the anchor investor process by issuing 15.23 lakh shares to five established anchor investors. These include firms such as Motilal Oswal Finvest and ArthaSanchay Investment Trust.
Future Expansion Plans Dictate Proceeds Use
The proceeds generated from the fresh issue are earmarked for crucial corporate growth initiatives. Susan Electricals plans to utilise ₹10.29 crore of the funds specifically for the expansion of its existing manufacturing facility located in Ghaziabad, Uttar Pradesh. Another significant portion, amounting to ₹33 crore, has been allocated to meet working capital requirements. The remainder of the raised funds will be directed towards general corporate purposes.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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