Atmastco: Shares list at 18% premium, marking a decent start to their public journey
Upstox
3 min read • Updated: February 23, 2024, 12:33 PM
Summary
Shares of engineering and construction company Atmastco Ltd made a decent start on the NSE SME platform on Friday, February 23, with the stock listing at an 18% premium
The Atmastco stock opened the session at ₹91 on NSE Emerge compared to its initial public offering (IPO) price of ₹77 per share. By 12:30 PM, the share price surged another 5% compared to the opening price to ₹95.55.
The ₹56.21-crore Atmastco IPO was a fixed price issue comprising 73.05 lakh equity shares priced at ₹77 per unit.
The lot size for the application was 1,600 shares. This means that the minimum application amount for retail investors was ₹1.23 lakh. Going by Friday’s listing, small investors who were successfully allotted Atmastco shares were sitting on a profit of at least ₹22,400 as soon as trading began in the stock.
Atmastco IPO subscription and other details
The SME IPO, which was open for subscription from February 15 to February 20, was subscribed by more than 16 times after the end of the three-day bidding period. According to the data available on the National Stock Exchange of India, the Atmastco IPO had received total bids for more than 11.99 crore shares against 73.05 lakh shares on offer. The retail investors’ segment attracted highest number of bids, with an oversubscription of 17.23 times.
The IPO comprised fresh issue of 54.8 lakh shares aggregating to ₹42.20 crore and an offer for sale (OFS) of 18.26 lakh shares worth ₹14.06 crore.
Promoter Subramaniam Swaminathan Iyer, who initially held 43.62% of equity stake in Atmastco, has offloaded 10,95,360 equity shares amounting to ₹8.43 crore in the OFS. Another promoter Venkataraman Ganesan, who owned 22.4% stake, has also sold 7,30,240 equity shares aggregating to ₹5.62 crore through the issue. Apex Steel and Technology India Pvt Ltd, which owned 25.56% shares in Atmastco, did not participate in the OFS.
The company is likely to utilise the IPO proceeds to meet the working capital requirements and for prepayment and repayment of all or a portion of certain secured and unsecured loans. Besides that, the funds raised were also supposed to be used for general corporate purposes and to meet the offer expenses.
The company had appointed Affinity Global Capital Market Pvt. Ltd as the book running lead manager, while Cameo Corporate Services Ltd was the official registrar of the issue. Atmastco is a Chhattisgarh-based company engaged in offering engineering, procurement and construction (EPC) services in the ferrous and non- ferrous sector.
The company produces and supplies heavy fabrication structures and equipment for energy, steel, cement, and infrastructure sectors. It also trades in steel, iron, chemical alloys, metals and other industrial products.