Hy-Tech Engineers shares debut at 42% premium
What's the story
Hy-Tech Engineers, a hydraulic fitting manufacturer, has made a strong debut on the stock market. The company's shares were listed at ₹75 per share on the National Stock Exchange (NSE), a premium of 41.51% over its issue price of ₹53. On the Bombay Stock Exchange (BSE), the shares opened at ₹72 per share, up by 35.85% from their issue price.
IPO details
Hy-Tech Engineers IPO subscribed 244.41 times
Hy-Tech Engineers' initial public offering (IPO) was massively oversubscribed by 244.41 times on the last day of bidding.
The qualified institutional buyers (QIB) portion was subscribed by a whopping 255.77 times, while the non-institutional investors' portion received a massive subscription of 402.29 times.
Retail individual investors (RIIs) also showed strong interest in the company's shares, with their segment getting subscribed by an impressive 170.58 times on the final day of bidding.
Fund allocation
Company reduces size of IPO
The Maharashtra-based company has reduced the size of its IPO, cutting the fresh issue to ₹60 crore from an earlier ₹70 crore.
It has also increased the offer-for-sale (OFS) component to nearly 1.43 crore shares from 1.19 crore shares.
Of the net IPO proceeds, Hy-Tech Engineers plans to use ₹29.96 crore for procuring machinery and equipment for expansion at its Kavathe Unit, Shirwal Unit, and Pithampur Unit-I.
Business operations
Funds to be used for loan repayment, other purposes
The remaining funds from the IPO will be used for loan repayment, and the remaining funds will be allocated for general corporate purposes.
Hy-Tech Engineers operates on a business-to-business (B2B) model in domestic and international markets, serving original equipment manufacturers (OEMs) and other industrial customers.
The company's market capitalization after the listing of shares stood at ₹682.94 crore.