contentIn the fast-paced world of investment opportunities, one recent development has captured the attention of seasoned investors and novices alike — the Presstonic Engineering IPO. This groundbreaking initial public offering opened for subscription on Monday, December 11, ushering in a new chapter for Presstonic Engineering Ltd.
Presstonic Engineering IPO opens for subscription on Monday, December 11, and will close on Wednesday, December 13. (www.presstonic.com)
IPO Details at a Glance
Worth and Structure
With a substantial value of ₹23.30 crore, the Presstonic Engineering IPO is a breath of fresh air in the market. The IPO comprises a completely fresh issue of 3,236,800 equity shares, showcasing the company’s commitment to expansion and innovation.
Subscription Period and Price Band
Investors eager to seize this opportunity have until Wednesday, December 13, to subscribe. The IPO’s price band is strategically set at ₹72, providing a competitive edge in the market. The lot size is fixed at 1,600 shares, allowing investors flexibility while bidding.
Company Profile
Presstonic Engineering Ltd specializes in manufacturing infrastructure products, metro rail rolling stock products, and metro rail signaling products. The company has established itself as a reliable supplier to both domestic and international Original Equipment Manufacturers (OEMs) involved in rail and metro rail rolling stock and signaling equipment.
Leadership and Promoters
The driving force behind Presstonic Engineering’s success lies in the capable hands of its promoters — Yermal Giridhar Rao and Herga Poornachandra Kedilaya. Their visionary leadership has steered the company toward unparalleled growth and innovation.
IPO Objectives
Financial Allocation
The Presstonic Engineering IPO’s objectives are not merely confined to raising capital but extend to strategic financial allocations. The funds raised will be directed towards capital expenditures for acquiring cutting-edge equipment and machinery, full repayment of certain loans, meeting working capital requirements, covering issue costs, and supporting general corporate initiatives.
Key Players in the IPO Process
Book Running Lead Manager and Registrar
Ensuring a seamless IPO process, Finshore Management Services Limited takes the helm as the book running lead manager. Cameo Corporate Services Limited, the issue’s registrar, adds an extra layer of credibility and efficiency to the proceedings.
Market Maker
Nikunj Stock Brokers assumes the crucial role of the market maker, contributing to the smooth functioning of the Presstonic Engineering IPO.
Subscription Status — A Resounding Success
As of day 3, the Presstonic Engineering IPO has garnered tremendous interest, boasting a subscription status of 113.55 times. Retail investors have displayed remarkable enthusiasm, subscribing 143.33 times, while non-institutional buyers have shown confidence with a subscription rate of 74.51 times.
IPO Journey: Day by Day
Day 1 and Day 2
On the inaugural day, the subscription status stood at an impressive 16.88 times, setting the tone for a successful journey. Day 2 witnessed a remarkable surge, with the overall subscription reaching an impressive 49.96 times.
Grey Market Premium — A Market Indicator
GMP Today
In the ever-watchful eye of the market, the Grey Market Premium (GMP) for Presstonic Engineering IPO stands at +50. This signifies a significant premium of ₹50 in the grey market, reflecting investors’ eagerness to secure a stake in this promising venture.
Estimated Listing Price
Considering the upper end of the IPO price band and the current GMP, the estimated listing price of Presstonic Engineering shares is projected at ₹122 apiece. This marks a substantial 69.44% increase from the IPO price of ₹72, underlining the potential for lucrative returns.
Expert Opinions and Concerns
In the world of investments, scrutiny is inevitable. Industry experts have pointed out Presstonic Engineering’s steady growth in top lines but have raised questions about the sudden surge in bottom lines from FY23 onwards. As per the super FY24 annualized earnings, some express concerns about the issue being fully priced.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Createwealth. We advise investors to check with certified experts before making any investment decisions.