Arrowhead Separation, following its initial public offering (IPO), made a solid debut on the BSE SME, with its shares opening at a 7.3% premium at ₹250, surpassing the issue price of ₹233. However, the excitement subsided slightly as Arrowhead Separation shares experienced a modest 2% decline post-listing, triggering a 5% lower circuit at 10:05 IST.
The Arrowhead Separation Engineering IPO, which opened for subscription from November 16 to November 20, garnered substantial attention from investors. The issue price, set at ₹233, was 23.3 times the face value of ₹10 per equity share. Investors had the flexibility to bid for a minimum of 600 shares and in multiples thereof.
The IPO’s subscription status was impressive, reaching 94.79 times on day 3, with retail investors subscribing 142.30 times and non-institutional buyers subscribing 46.02 times, according to data on chittorgarh.com. The strong response began with a subscription status of 10.80 times on day 1 and 31.44 times on day 2.
Arrowhead Separation Engineering’s IPO, valued at ₹13 crore, comprised a fresh issue of 558,000 equity shares, with no offer for sale (OFS) component, as per the Red Herring Prospectus (RHP). The company plans to utilize the net proceeds from the IPO for working capital needs, repaying NBFC loans, and general corporate purposes.
Cameo Corporate Services Limited serves as the registrar for the IPO, while Aryaman Financial Services Limited acts as the book running lead manager. Aryaman Capital Markets functions as the market maker for the Arrowhead Separation Engineering IPO.
Comparatively, the Grey Market Premium (GMP) for Arrowhead IPO stood at +25 ahead of listing, indicating a premium of ₹25 in the grey market on Tuesday, according to investorgain.com. This consistent GMP for the last 8 sessions suggests a positive market sentiment.
Considering the upper end of the IPO price band and the current grey market premium, the estimated listing price for Arrowhead Separation shares was ₹258, reflecting a 10.73% increase over the IPO price of ₹233. The ‘grey market premium’ serves as an indicator of investors’ willingness to pay more than the issue price for the shares.
