Ramdevbaba Solvent IPO: Issue oversubscribed on day 3 amid strong NII, retail demand; Know GMP, subscription status

The subscription period for the Ramdevbaba Solvent IPO began on Monday, April 15, and will end on Thursday, April 18. The price band for the Ramdevbaba Solvent initial public offering is ₹80 to ₹85 per share, with a face value of ₹10. The lot size for the Ramdevbaba Solvent IPO is 1,600 shares.

According to its red herring prospectus (RHP), the firm is in the business of producing, distributing, marketing, and selling physically refined rice bran oil, or "rice bran oil." The company makes and supplies rice bran oil to fast-moving consumer goods (FMCG) companies, such as Mother Dairy Fruit & Vegetable Private Limited, Empire Spices and Foods Ltd, and Marico Limited.

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Also Read: Ramdevbaba Solvent IPO announces price band at ₹80-85 apiece; issue to open on April 15

Furthermore, the company makes, sells, and distributes rice bran oil under the trademarks "Tulsi" and "Sehat" through thirty-eight (38) distributors who subsequently serve other Maharashtran businesses. The oil extracted from the bran, or rough outer brown coating of rice, is known as rice bran oil.

The following is the allocation of equity shares for the Ramdevbaba Solvent IPO: Up to 16,80,000 equity shares are allocated to the QIB Anchor Portion; up to 11,20,000 equity shares are allocated to Net Qualified Institutional Buyers (QIB); up to 8,40,000 equity shares are allocated to Non-Institutional Investors (NII); up to 19,60,000 equity shares are allocated to Retail Individual Investors (RII); and up to 3,13,600 equity shares are allocated to Market Maker.

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Ramdevbaba Solvent IPO subscription status

Ramdevbaba Solvent IPO subscription status is 126.21 times, on day 3.

The retail portion has been subscribed 79.96 times, and NII portion has been booked 314.46 times. The qualified institutions buyers (QIBs) were booked 65.95 times. 

The company has received bids for 49,47,42,400 shares against 39,52,000 shares on offer, according to data on chittorgarh.com.

Ramdevbaba Solvent IPO subscription status was 4.68 times, on day 1, and the issue was subscribed 10.06 times on day 2. 

Ramdevbaba Solvent IPO details

The approximately ₹50.27 crore Ramdevbaba Solvent IPO consists of a fresh issue of 59,13,600 equity shares with a face value of ₹10. The  offer-for-sale component isn't there.

The business intends to use the net proceeds of the offering to support general corporate objectives, working capital needs, the construction of a new manufacturing facility, and the full or partial repayment of certain outstanding debt.

The issue's Book Running Lead Manager is Choice Capital Advisors Private Ltd. The registrar for the IPO is Bigshare Services Private Limited.

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Ramdevbaba Solvent IPO GMP today

Ramdevbaba Solvent IPO GMP or grey market premium is 27. This indicates Ramdevbaba Solvent share price were trading at a premium of ₹27 in the grey market, according to investorgain.com.

With the upper end of the IPO pricing band and the existing premium on the grey market taken into account, Ramdevbaba Solvent predicted that its IPO would sell for ₹112 per share, which is 31.76% more than the ₹85 IPO price.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Greenhitech Ventures IPO subscribed over 69x on day 2 so far on strong retail interest; know GMP, subscription status

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