Tipco Engineering share price made a flat debut in the Indian stock market on Wednesday, April 1, as it listed at less than 1% premium over the initial public offering (IPO) price on BSE SME.
Tipco Engineering share price opened at ₹89.25 apiece as against the IPO price of ₹89. This means that the IPO allottees made less than 1% gain on Tipco Engineering IPO listing.
The stock market debut was largely in line with the market expectations, as signalled by the grey market premium (GMP). Tipco Engineering IPO GMP was +0 ahead of listing, suggesting a listing at par with the offer price.
Tipco Engineering IPO details
Tipco Engineering’s IPO was a book-built issue worth ₹60.55 crore, comprising a fresh issue of 0.54 crore shares amounting to ₹48.49 crore and an offer for sale of 0.14 crore shares aggregating to ₹12.06 crore.
The IPO opened for subscription on March 23 and closed on March 25, with the allotment finalised by March 27.
The price band for the issue was set at ₹84– ₹89 per share, with a lot size of 1,600 shares. For retail investors, the minimum investment stands at ₹2,84,800 for 3,200 shares, calculated at the upper end of the price band.
Among investor categories, qualified institutional buyers (QIBs) showed strong demand, subscribing 3.2 times their allotted portion, while non-institutional investors (NIIs) quota was subscribed 2.1 times. In contrast, retail participation was relatively weak, with its segment witnessing only 0.66 times bids.
The company plans to utilise the IPO proceeds primarily to improve its balance sheet, with ₹30 crore allocated for debt repayment and ₹7.66 crore earmarked for working capital needs.
Tipco Engineering is engaged in manufacturing industrial equipment such as bead mills, dispersers, and homogenisers, serving industries including chemicals, coatings, printing, and packaging. It also executes turnkey projects for manufacturing plants, contributing to its services revenue.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
