Jindal Supreme IPO fully subscribed in 30 minutes
What's the story
The Initial Public Offering (IPO) of Jindal Supreme has been fully subscribed within just 30 minutes of its opening on the first day. The strong demand is reflected in the rise of the company's Grey Market Premium (GMP). The GMP, which indicates an unlisted share's premium over its issue price, has jumped to ₹27, suggesting an estimated listing gain of 29.03%.
Investment insights
Everything you need to know about the IPO
The Jindal Supreme IPO is a ₹124.88 crore issue with a price band of ₹88-₹93 per share.
The company has set aside a minimum of 161 shares for retail investors, which translates to an investment of ₹14,973 at the upper end of the price band.
Sarthi Capital Advisors is the book running lead manager for this issue while Bigshare Services is acting as its registrar.
Company profile
A look at the company
Founded in March 1974, Jindal Supreme (India) Limited is a manufacturer and supplier of steel pipes, tubes, and other steel products for infrastructure and industrial applications.
The company has been in operation for over five decades.
Its product range includes Mild Steel (MS) black pipes and tubes, Galvanized Iron (GI) tubular poles, galvanized pipes, and metal beam crash barriers.
Expansion strategy
Plans to use net proceeds for repayment of borrowings
Jindal Supreme's products are manufactured in different sizes and specifications as per the relevant Indian Standards.
They cater to various sectors such as water supply and plumbing, roads and highways, bridges, oil and gas, chemicals, infrastructure and construction, agriculture as well as rural electrification.
The company plans to use the net proceeds from this IPO to repay/ prepay certain outstanding borrowings along with accrued interest of ₹71 crore.