On NSE, the stock listed at Rs 721.1 apiece, up 36.3%.
Ahead of the listing, the company’s shares traded with a GMP of 46% to the issue price.
The IPO, which included a fresh equity sale of 25.58 lakh shares and an offer for sale (OFS) of 6.16 lakh shares, received overwhelming response from investors with a subscription of 200 times at close.
The proceeds from the fresh issue will be used for setting up a new facility at Vallam-Vadagal for manufacturing high tensile fasteners and hex bolts, funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, repayment of debt and general corporate purposes.
The company is precision component manufacturer of technical springs like disc and strip springs (DSS) including wedge lock washers; coil and spiral springs (CSS) and special fastening solution (SFS) supplying to original equipment manufacturers (OEMs), Tier 1 and channel partners.Also Read: IPO calendar next week: 13 new issues to flood primary market in one of busiest weeks seen this yearTheir technical springs and high tensile fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, US, Sweden, Switzerland etc. Accordingly, they are a key link in the global supply chain for OEMs.
The business primarily comprises springs technology division, under which they manufacture DSS including wedge lock washers (WLW), CSS and SFS in which they manufacture anchor bolts, studs and nuts.
Analysts anticipate a continued higher demand for its products from the end-consuming sectors like renewables, industrials and railways.
For FY24, the company’s revenue from operations rose 22% to Rs 202 crore, driven by incremental sales of DSS due to the addition of new customers and increased demand from renewable energy, railways and industrial sectors, as well as incremental sales of CSS. Profit after tax for the same period was at Rs 22.33 crore.