Advance Agrolife IPO: Final Day Subscription, GMP, and Other Key Details
Advance Agrolife’s initial public offering (IPO) has opened for its final day subscription on Friday, October 3. The IPO, which aims to raise almost Rs 200 crore from the primary market, has garnered significant interest from qualified institutional buyers (QIBs) on its second day, with a subscription of 1.87 times.
Meanwhile, the IPO was subscribed 0.42 times on its first day on Monday, indicating a slow start to the issue. However, with the strong response from QIBs on the second day, the overall subscription has picked up pace.
IPO Details
The Advance Agrolife IPO is a book-built issue of Rs 192.86 crore, comprising a fresh issue of 1.93 crore shares. The price band for the IPO is set between Rs 95 and Rs 100 per share.
The subscription window will be open from September 30 to October 3, with the allotment expected to be finalized on October 6. The company will transfer shares to the demat accounts of successful bidders on October 7, and refunds for non-allottees will be done on the same day.
Shares of the company are scheduled to list on the BSE and NSE on October 8, providing investors with an opportunity to buy and sell the stock on the secondary market.
Investor Categories and Allocation
Retail investors can participate in the IPO by bidding for a single lot size of 150 shares, requiring an investment of Rs 15,000. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,10,000. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 67 lots, leading to an investment of Rs 10,05,000.
Qualified Institutional Buyers (QIBs) will be offered a maximum of 50% of the net issue. Retail investors will be allocated a minimum of 35% of the net issue, and at least 15% will be reserved for Non-Institutional Investors.
Book Running Lead Manager and Registrar
Choice Capital Advisors Ltd. is the book-running lead manager, and KFin Technologies Ltd. is the registrar of the issue. These entities will play a crucial role in managing the IPO process and ensuring a smooth allocation of shares to investors.
Grey Market Premium (GMP)
According to InvestorGain, the Grey Market Premium (GMP) for the Advance Agrolife IPO stood at Rs 15 as of 8:31 a.m. on October 3. This indicates a listing price of Rs 115 apiece at a premium of 15% on the upper limit of the price band.
The GMP is an important indicator of the market’s expectations from the IPO, and a high GMP can indicate strong demand for the stock. However, it’s essential to note that the GMP can fluctuate and may not necessarily reflect the actual listing price.
Investment Opportunities
The Advance Agrolife IPO provides an opportunity for investors to participate in the growth story of the company. With a strong focus on the agricultural sector, the company is well-positioned to benefit from the growing demand for agricultural products in India.
However, as with any investment, it’s essential to do your own research and consider your risk tolerance before investing in the IPO. It’s also crucial to read the red herring prospectus and understand the company’s financials, business model, and growth prospects.
Conclusion
The Advance Agrolife IPO has garnered significant interest from QIBs, and the final day subscription will be crucial in determining the overall success of the issue. With a strong GMP and a growing demand for agricultural products, the company is well-positioned for growth.
However, investors must be cautious and do their own research before investing in the IPO. It’s essential to consider the company’s financials, business model, and growth prospects before making an investment decision.
For more information on the Advance Agrolife IPO, including the latest updates and analysis, click here. You can also visit our website for more information on IPO news and stock market updates.
