Auro Impex and Chemicals IPO: Final Day Subscription Number

Auro Impex & Chemicals IPO closed on Monday, 15th May 2023. The IPO had opened for subscription on 11th May 2023. Let us look at the final subscription status of Auro Impex & Chemicals Ltd at the close of subscription on 15th May 2023.

A quick word on Auro Impex & Chemicals Ltd and the SME IPO

Auro Impex & Chemicals Ltd, is an SME IPO on the NSE which opened for subscription on 11th May 2023. The company, Auro Impex & Chemicals Ltd, was incorporated in 1994 for manufacturing, exporting, and supply of Discharge & Collecting Electrodes, and Electrostatic Precipitator (ESP). The company has over 30 years industry experience. It supplies to the Original Equipment manufacturers (OEMs) and service providers. In terms of its service offerings, it offers a full range of services from sourcing of components, designing, manufacturing, quality testing etc. Some of its higher respected clients in the OEM market include the heavy equipment players like Thermax, L&T, ISGEC Heavy Engineering etc.

What are the product applications? Collecting Electrodes are roll-formed from CRCA sheets and corrosion resistant Corten. These sections are used as dust collecting equipment for major pollution control applications in power plants, cement industries, paper, and sugar industries. Discharge Electrodes / Emitting Electrodes is the heart of Electrostatic Precipitator. The Discharge Electrodes emit charging ions that generate an electrical field between the discharge electrodes and the collecting plates. The company is also into support, shaft and hollow bushing, silo manufacturing and tank fabrication.

The Rs27.07 crore IPO of Auro Impex & Chemicals Ltd comprises entirely of a fresh issue. The total SME IPO of Auro Impex & Chemicals Ltd entails issue of 34.704 lakh shares in the book building price band of Rs74 to Rs78 per share aggregating to Rs27.07 crore. The stock has a face value of Rs10 and retail bidders can bid in minimum lot size of 1,600 share each. Thus, the minimum investment of Rs124,800 in the IPO is the base limit. That is also the maximum that a retail investor can apply for in the IPO.

HNIs can invest in 2 lots of 3,200 shares worth Rs249,600 as the bare minimum investment. There is no upper limit for the HNI / NII category. Auro Impex & Chemicals Ltd will deploy the funds for working capital needs of the company, organic / inorganic expansion of business and general corporate purposes. Post the IPO, the promoter equity in the company will get diluted from 99.99%. The issue is lead managed by Affinity Global Capital Markets Private Ltd, while Cameo Corporate Services Limited will be the registrars to the issue. Let us now turn to the final subscription details. Rikhav Securities handled the market making.

Final subscription status of Auro Impex & Chemicals Ltd

Here is the subscription status of the Auro Impex & Chemicals Ltd IPO as at close on 15th May 2023.

The issue was open for QIBs, retail investors and for the HNI / NIIs. The allocation to the three categories in terms of the number of shares and the percentage of allocation can be best captured in the table as under.

The subscription was dominated by the retail investors followed closely behind by the HNI / NII segment. However, the overall subscription was fairly muted, possibly due to challenging market conditions. Here is the day-wise progression of the subscription status of Auro Impex & Chemicals Ltd IPO.

It is clear from the above table that all the three portions of QIB, retail and HNIs got fully subscribed on the first day of the IPO itself although the heft was built only on the last day.

The issue opened for subscription on 11th May 2023 and closed for subscription on 15th May 2023 (both days inclusive). The basis of allotment will be finalized on 18th May 2023 and the refunds will be initiated on 19th May 2023. In addition, the demat credits are expected to happen on 22nd May 2023 and the stock is scheduled to list on 23rd May 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated.