Storage Technologies and Automation makes a stellar debut with 90% premium
Upstox
3 min read • Updated: May 8, 2024, 1:41 PM
Summary
The Storage Technologies stock opened the session at ₹148.20, which was 90% higher than its IPO price of ₹78. As trade began, the stock rose to hit the 5% upper circuit at ₹155.59.
Metals and alloys manufacturer Storage Technologies and Automation Ltd made a strong debut on April 8 (Wednesday), with the stock listing at a 90% premium on the BSE SME platform.
The Storage Technologies stock opened the session at ₹148.20, which was 90% higher than its initial public offering (IPO) price of ₹78. As soon as the trade began, the stock rose further to hit the 5% upper circuit at ₹155.59, doubling from its issue price.
Given that the lot size in the Storage Technologies Racks and Rollers IPO was 1,600 shares, successful bidders who were allotted shares would have been sitting on a profit of at least ₹1.24 lakh (₹77.59 x 1,600) after the listing of the shares on the exchange.
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Investors were expecting a solid opening for Storage Technologies shares on the back of massive demand seen for the ₹29.95-crore IPO during the three-day bidding period from April 30 to May 3.
The Storage Technologies Racks and Rollers IPO saw an overall subscription of nearly 279 times, receiving bids for 71.1 crore equity shares against the 25.5 lakh shares on offer.
While the non-institutional investors’ (NII) segment was subscribed 422 times, the QIBs’ portion was overbooked by 118 times. The quota reserved for retail investors, meanwhile, saw a subscription of 242 times.
The Storage Technologies IPO was a 100% book-built issue. It comprised a fresh issuance of 38.4 lakh shares, with no offer-for-sale (OFS) component. The IPO price band was fixed in the range of ₹73 to ₹78 per share, while the minimum bid size for an application was 1,600 shares for retail investors.
Just ahead of the public issue, Storage Technologies Racks and Rollers had also raised ₹8.50 crore from anchor investors in a pre-IPO round.
The company had earlier said that it planned to utilise ₹27.50 crore of the net IPO proceeds to finance working capital requirements.
Storage Technologies had appointed Oneview Corporate Advisors Pvt. Ltd as the book-running lead manager, while Integrated Registry Management Services Pvt. Ltd was hired as the registrar for the issue. Nikunj Stock Brokers was the market maker for the Storage Technologies IPO.
Founded in October 2010, Storage Technologies is a maker of storage racking systems. The firm caters to enterprises in the oil and gas, automotive, aerospace, and food and beverages sectors.
The company is an ISO 9001:2015 certified storage solution manufacturing company. Storage Technologies’ revenue in 2022-23 stood at ₹81.37 crore compared with nearly ₹70 crore in 2021-22. Profit after tax in FY23 stood at ₹48.30 lakh compared with a loss of ₹20.49 lakh in FY22.
In FY24, during the seven months ending October 2023, revenue stood at ₹53.17 crore, while PAT skyrocketed to ₹3.6 crore.