Photo by Slav4 (Ariel Palmon), Wikimedia Commons, CC BY-SA 3.0
Augmont Enterprises’ initial public offering has been subscribed nearly three times over, at 2.88 times, as bidding for the Rs 825 crore issue continues through August 25.
The IPO opened on August 21 with a price band of Rs 750-788 per share, split between a fresh issue worth Rs 620 crore and an offer for sale of Rs 205 crore.
Demand has been strongest from non-institutional investors at 4.18 times subscribed, followed by retail investors at 2.94 times and qualified institutional buyers at 1.85 times.
Augmont Enterprises operates an integrated precious metals platform covering procurement and refining, bullion trading, digital gold, jewellery manufacturing and international sales.
The basis of allotment is expected to be finalised on August 27, with shares credited to successful applicants’ demat accounts by August 28 and listing on the BSE and NSE tentatively set for August 31.
Grey market premium ahead of listing has indicated gains of around 35-36 percent over the issue price, though brokerages have flagged the company’s thin operating margins as a risk for investors to consider.
Nuvama Wealth Management is the book running lead manager for the issue, with MUFG Intime India serving as registrar.
The grey market premium ahead of listing has signalled gains of around 35-36 percent over the issue price, with premiums reported in the range of Rs 275-280 per share above the upper band.
Most brokerages tracking the issue have recommended subscribing, citing Augmont’s integrated business model spanning procurement, refining, bullion trading and digital gold, though some flagged thin operating margins of below 0.4 percent and customer concentration as risks.
Founded in October 2012 and based in Mumbai, Augmont Enterprises operates across 24 states in India, alongside international sales and gold-backed financial services.
The IPO’s minimum application lot is 19 shares, meaning a retail investor bidding at the upper price band of Rs 788 would need to invest at least Rs 14,972.
Photo by Slav4 (Ariel Palmon), Wikimedia Commons, CC BY-SA 3.0
