The IPO of Gabion Technologies India, a company that provides geotechnical engineering and infrastructure solutions, opened for subscription on Tuesday, January 6.
The issue will remain open until January 8. The IPO received a strong response right from the start and was fully subscribed soon after opening. By 11 am on the first day, it was subscribed more than four times.
The total size of the IPO is ₹29.16 crore, and it has attracted significant interest from retail and small investors.
The company has set a price band of ₹76 to ₹81 per share. This IPO is a fresh issue, which means there is no offer for sale (OFS) component.
Issue Size and Use of Funds
Under this IPO, the company is issuing 3.6 million new equity shares. The money raised from the issue will be used for:
Purchase of plant and machinery
Meeting working capital requirements
General corporate purposes
Before the IPO opened, the company raised around ₹8.2 crore from anchor investors. These investors include HDFC Bank, 360-ONE Group, Neo Asset Management,
and Tiger Strategies Fund. About 10.22 lakh shares were allotted to anchor investors at the upper price band of ₹81, which has boosted investor confidence.
Lot Size, Investment Amount, and Important Dates
The IPO has a lot size of 1,600 shares. Retail investors must apply for a minimum of two lots, which means 3,200 shares. At the upper price band of ₹81, the minimum investment amount comes to around ₹2.59 lakh.
Subscription data for the first day will be released after 10 am, and investors are closely watching the numbers.
The IPO allotment is expected on January 9, while refunds and shares will be credited to demat accounts on January 12.
Grey Market Premium (GMP) and Listing Details
The grey market premium (GMP) for the Gabion Technologies IPO is positive.
According to Investorgain, the shares are trading at a premium of ₹30 in the grey market, which is about 38% higher than the upper price band. This has increased expectations of strong listing gains.
Gabion Technologies India was founded in 2008 and is engaged in the design, manufacturing, and installation of gabions, geosynthetic materials,
and rockfall protection netting. These products are used in infrastructure development and environmental protection projects.
The company’s shares are expected to be listed on the BSE and NSE on January 13.