The initial public offering (IPO) of Sahasra Electronics Solutions saw tremendous investor interest on the final day of subscription today, becoming oversubscribed 52.98 times by late afternoon.
This Rs. 186 crore public issue received bids for over 65 lakh shares against the 1.2 lakh shares on offer, with strong demand seen across all categories of investors. Retail investors subscribed 45.95 times their portion while non-institutional buyers bid 86.02 times the reserved shares. Qualified institutional buyers (QIBs) oversubscribed their quota by 40.49 times.
The overwhelming response surpassed expectations and highlights bullish sentiment towards the electronics manufacturer. Trading at a premium in the grey market today, shares of Sahasra Electronics were signaling an optimistic debut next week. The grey market premium hovered around Rs. 200, translating to a projected 70% gain over the IPO price of Rs. 269-283 per share.
The funds raised will be primarily used to set up new production facilities, invest in a subsidiary and boost working capital. An electronics system design and manufacturing firm, Sahasra Electronics has carved a niche in producing printed circuit board assemblies, LED lighting and IT accessories. It supplies over 80% of output to global markets in North America and Europe.
With a profitable track record of 866% revenue and 1,300% profit growth in the last fiscal, the company offers investors an exciting play on the booming ESDM sector. A smooth sailing listing is on the cards for this NSE Emerge listed stock, rewarding those who backed one of 2024’s largest SME IPOs so far.
