Augmont Enterprises IPO closes today as GMP stays above 40%
What's the story
The bidding for Augmont Enterprises' initial public offering (IPO) closes today, August 25. The issue has already drawn significant interest from investors, being oversubscribed by 14.46 times on Day 2 against the offer of 77.15 lakh shares. Retail investors have also shown enthusiasm with their quota subscribed by 13.37 times against the reserved 38.31 lakh shares.
IPO specifics
Issue details and price band
The Augmont Enterprises IPO, which opened for subscription on August 21, comprises a fresh issue of 79 lakh shares worth ₹620 crore and an offer for sale (OFS) of 26 lakh shares aggregating ₹205 crore.
The company has set the price band at ₹750-788 per share with a lot size of 19 shares.
At the upper end of this price band, retail investors will have to invest at least ₹14,972 to apply for one lot.
Market performance
GMP at ₹325 per share
The gray market is also giving a thumbs up to the Augmont Enterprises IPO.
The latest Gray Market Premium (GMP) is ₹325 per share or 42% over the upper IPO price band of ₹788. At this GMP, the expected listing price comes to around ₹1,113 per share.
If this trend continues till listing, it could result in a strong debut for the stock with good gains for investors.
Business expansion
Financial performance of Augmont Enterprises
In FY26, Augmont Enterprises reported a 42% rise in total income to ₹94,282.47 lakh from ₹66,252.05 lakh in FY25.
Profit after tax (PAT) also jumped by 53% to ₹348.3 lakh in FY26 from ₹227.19 lakh in FY25.
The company intends to use the net proceeds of the IPO mainly for future working capital requirements such as inventory procurement and maintenance as well as meeting advance margin requirements, with around ₹465 crore proposed for these purposes.