Highway Infrastructure IPO: GMP sees drastic fall ahead of listing
What's the story
Highway Infrastructure Ltd, a company in the infrastructure development and management sector, is all set to make its debut on Dalal Street tomorrow. The company's initial public offering (IPO) drew an exceptional response, with subscriptions exceeding 316 times on the last day. However, despite ranking among the most sought-after IPOs in India this year, the grey market premium (GMP) has eased sharply over the weekend, slipping to below 35%.
Market performance
GMP stood at over 57% last week
Ahead of its market debut, investors are keeping a close eye on the GMP of Highway Infrastructure shares. Currently, the stock is commanding a ₹24 premium over its issue price in the unlisted market, indicating a 34.29% markup. This is notably lower than last week's levels, when the GMP was trading above 57%, signalling a sharp cooling in grey market sentiment. The company's IPO was open for public subscription from August 5-7.
Fundraising details
Highway Infrastructure raises ₹130 crore through IPO
Highway Infrastructure's IPO raised ₹130 crore through a mix of fresh issue and an offer-for-sale (OFS) component. The fresh issue consisted of 1.39 crore equity shares worth ₹97.52 crore, while the OFS component comprised 46.4 lakh shares worth ₹32.48 crore. The IPO was priced in the range of ₹65-₹70 per share. The public issue was subscribed 164.48 times in the retail category, 432.71 times in QIB, and 473.1 times in the NII category by August 7.