The initial public offering (IPO) of Arvind and Company Shipping Agencies, which witnessed strong interest from shareholders from Day 1, is heading towards a strong closing on Monday (October 16). On the last day of bidding, the company continued to attract a lot of attention from investors.

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As of 11:21 am on the final day, Arvind and Company IPO was subscribed 81.78 times, with a strong response in all categories. This indicates that the shares of the company will make a bumper debut on NSE SME.

Retail investors remained at the forefront, buying 110.57 times the allotted quota, while high net worth individuals (HNIs) have bid 48.93 times the reserved portion.

The grey market premium also indicated a superb listing for the company. Last heard, shares of Arvind and Company were commanding a premium of Rs 18 or 40% to its issue price of Rs 45. This means the stock will list at approximately Rs 63 if the GMP does not fall.

The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing.

The Gujarat-based company has reserved 1.68 lakh equity shares for the market maker, of the total issue size of 32.76 lakh shares. The remaining number of shares, i.e. 31.08 lakh shares, is considered as the net issue, which is further divided equally amongst retail investors and HNIs. That comes to 15.54 lakh shares each for both categories of investors.

Arvind and Company aims to mop up Rs 14.74 crore via public issue at an issue price of Rs 45 per share, comprising only a fresh issue component.

Most of the fresh issue money will be utilised for the capital expenditure of the firm, and the rest will be used for general corporate purposes and public issue expenses.

Beeline Capital Advisors Pvt Ltd is the book-running lead manager to the issue, while Skyline Financial Services Private Ltd is the registrar. The market maker for Arvind and Company Shipping Agencies IPO is Spread X Securities.

The allotment for the Arvind and Company Shipping Agencies IPO will likely be finalised on Thursday, October 19. The company shares will be listed on NSE SME with a tentative listing date fixed as Wednesday, October 25, 2023.

Financials, company overview

Arvind and Company Shipping Agency Limited's revenue surged by 153.77% and profit after tax (PAT) increased by 246.15% between the financial year ending with March 31, 2023 and March 31, 2022.

Established in September 1987, Arvind and Company Shipping Agency is situated in Gujrat's Jamnagar. The company is in the business of carrying and forwarding agents. The company operates in vessels like Cargo Barges, Flat Top Barges, Crane Mounted Barges, Hopper Barges, Spud Barges and tugs for Cargo.

The company mainly provides services related to Marine Vessels and Ancillary equipment and supplies equipment to multinational corporations. It has also expanded its business horizon by entering into the hospitality business with Hotel Millennium Plaza and Hotel 999.

Arvind and Company Shipping Agency Limited has over 15 employees and has completed more than 850 projects.

(Edited by : Amrita)

First Published:Oct 16, 2023 11:42 AM IST