GNA Axles lists at 20% premium to issue price

Shares of GNA Axles was listed at Rs 248.5 on the BSE, a 20 per cent premium over its issue price of Rs 207 per share.

The stock hit an intra-day high of Rs 260 before slipping to close at Rs 245, a gain of 18.4 per cent.

The Rs 130-crore initial public offering (IPO) of the Punjab-based automobile parts maker was oversubscribed 54 times. While the institutional investor portion was subscribed 17 times, the high networth individual portion was subscribed 217 times and the retail portion was subscribed 10 times.

The company will use the IPO money towards setting up of plant and machinery and for working capital requirement. The IPO was handled by PNB Investment Services and Ambit.

According to a note by Reliance Securities, GNA continues to sustain its leadership position in fast growing rear axle shaft segment, which is expected to grow by 13 per cent CAGR over next five years. During FY12-16, while revenue grew by 6.3 per cent CAGR, EBITDA saw 12.3 per cent CAGR. The broker had recommended subscribe to the issue based on stable EBITDA margin, presence in niche segment and healthy revenue from overseas sales and a supportive balance sheet.