Annu Projects shares made a weak debut on Wednesday, listing at a 24-27 per cent discount to the IPO price before quickly hitting the upper circuit. The stock, however, continued to trade below its IPO price of ₹99.
On the BSE, the stock began trading at ₹75, a 24.24 per cent discount to the issue price. On the NSE, it debuted at ₹72, marking a 27.2 per cent discount.
Within seconds of listing, the stock scaled the upper circuit, trading at ₹75.60 on the NSE and ₹78.74 on the BSE.
IPO subscription
The ₹175-crore initial public offering of the engineering, procurement, and construction firm was subscribed 2.93 times overall.
The non-institutional investor portion garnered 3.55 times subscription, while the retail portion was booked 2.68 times. The Qualified Institutional Buyers (QIBs) category was subscribed 1.72 times.
Annu Projects had fixed a price band of ₹94-99 a share for its IPO. The issue comprised only a fresh issue of 1,76,83,000 equity shares.
The company plans to utilise ₹115 crore of the IPO proceeds to fund working capital requirements, and ₹15 crore for capital expenditure on the purchase of machinery or equipment. The remainder will be used for general corporate purposes.
Mefcom Capital Markets Ltd was the book-running lead manager to the issue, while Kfin Technologies Ltd was the registrar.