Shares of steel processing company Bombay Coated & Special Steels made their stock market debut on Thursday, November 5, listing at a premium to the issue price of ₹82.
The stock opened at ₹91 on the National Stock Exchange (NSE), marking a premium of 10.98%. On the BSE, it debuted at ₹92.02, up 12.22% over the issue price.
The company’s ₹183.06-crore initial public offering (IPO) received a strong response from investors, with the issue subscribed 60.77 times by the close of bidding on November 2.
The IPO received bids for more than 13.5 crore shares against approximately 2.23 crore shares on offer. Non-institutional investors (NIIs) led the demand, subscribing to their reserved portion 158.32 times. The qualified institutional buyer (QIB) category was subscribed 35.50 times, while the retail investor portion saw 33.73 times subscription.
In the grey market, Bombay Coated & Special Steels shares were commanding a premium of around 10% on the morning of November 5, according to InvestorGain.
However, the grey market premium (GMP) is an unofficial indicator of investor sentiment and does not guarantee listing gains. It can fluctuate before the stock market debut and should not be considered a reliable indicator of the actual listing price.
The ₹183.06-crore IPO comprised an entirely fresh issue of approximately 2.23 crore equity shares. The company will utilise the proceeds to meet its business requirements.
Of the net proceeds, ₹125 crore has been earmarked for the repayment or prepayment of certain borrowings. Another ₹15.77 crore will be used to meet costs associated with acquiring capital equipment under existing lease arrangements with Siemens Financial Services Private Limited. The remaining proceeds will be allocated towards general corporate purposes.
About Bombay Coated & Special Steels
Bombay Coated & Special Steels is a steel processing company that converts steel coils into processed steel products through operations such as slitting, cut-to-length processing, shearing and embossing.
Its products cater to industrial customers requiring processed steel for their manufacturing operations. The company operates manufacturing facilities in Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan, and Sri City in Andhra Pradesh.
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