Summary of this article
Augmont Enterprises shares made their debut on Indian stock exchanges.
The initial public offering was oversubscribed over 105 times.
Net proceeds will fund essential future working capital requirements.
Augmont Enterprises was listed on the NSE and the BSE on August 31. On the BSE, the integrated gold and silver platform's shares listed at Rs 956 per share, with gains of 21.31 per cent over the upper end of the price band of Rs 788 apiece on the exchanges. On the NSE, the stock made its debut at Rs 961 apiece, with a premium of 21.95 per cent over the issue price.
Augmont Enterprises IPO: Listing Day Gain
Applicants who were successfully allotted a minimum of one lot or 19 shares of Augmont Enterprises would have made a profit of around Rs 3287 [(Rs 961 - Rs 788) x 19] after the stock listed on the exchanges. The company's market capitalisation stood at Rs 8,735.31 crore after listing, and 1.12 lakh shares of the company changed hands.
Augmont Enterprises IPO: Offer Size
The initial public offering (IPO) was a book-built issue worth Rs 825 crore and consisted of a fresh issue of 7.87 million shares worth Rs 620 crore and an offer for sale (OFS) of 2.6 million shares amounting to Rs 205 crore. The price band for the public issue was fixed at Rs 750-788 per share. The minimum lot size for retail investors was fixed at 19 shares, aggregating to an investment of Rs 14,972.
Augmont Enterprises IPO: Subscription
Augmont Enterprises IPO saw strong demand and was oversubscribed 105.78 times during its subscription period from August 21-25. Investors across categories placed bids for 816.18 million shares compared to the net offer size of 7.71 million shares available after anchor allocations.
The non-institutional investors (NII) booked their quota in the Augmont Enterprises IPO 121.47 times. Retail investors booked their quota 30.98 times, while the qualified institutional buyers (QIB) quota was subscribed 226.96 times. Employees of the company booked their quota 21.01 times.
Augmont Enterprises: Promoters
The promoters of the company diluted a portion of their stakes through the OFS. Following the listing of the stock, the promoter shareholding reduced to 81.91 per cent after the stock listed from 92.75 per cent prior to the public issue.
About Augmont Enterprises
Augmont Enterprises operates in the integrated gold and silver value chain and provides services such as procurement and refining, bullion trading, digital gold offerings, and jewellery manufacturing, serving businesses and consumers across 24 states. The company has no listed peers in the domestic market.
Augmont Enterprises IPO: Objective
The company will use Rs 465.00 crore from the fresh issue for funding future working capital requirements towards procurement, maintenance and scaling up of inventory, and funding advance margin requirements for procurement of inventory, and will use Rs 107.76 crore for general corporate purposes.
At the time of writing, shares of Augmont Enterprises were trading at Rs 1005 apiece on the BSE, up by 5.13 per cent compared to the listing price. On the NSE, the stock traded at Rs 1,005.75 apiece, up by 4.66 per cent compared to the listing price.
