Augmont Enterprise IPO opens: Analysts assign 'subscribe' tag; GMP at 38%

Augmont Enterprises review: Augmont Enterprises  Ltd's IPO will open for subscription on Friday (August 21)  and conclude on August 25 (Tuesday). The company has fixed a price band of ₹750-788 per share.

 

The company's ₹825 crore IPO is a mix of fresh issue and offer for sale. The fresh issue component is made up of 0.79 crore equity shares, and the OFS is up to 620 crore shares by existing shareholders. On the OFS, the company will not receive any proceeds from the public offering.

 

Augmont Enterprises IPO review

 

Analysts have shared a ‘Subscribe’ view on Augmont Enterprises IPO, noting that the company is suitable for listing gains, with potential for medium- to long-term growth.

 

Master Capital Services said that Augmont Enterprises has built a decade-old, integrated presence across the gold and silver value chain, combining enterprise-facing bullion trading on 'Augmont SPOT' with consumer-facing digital gold and offline offerings on 'Augmont Gold For All', backed by in-house refining capacity, a Jaipur jewellery manufacturing unit and a GIFT City subsidiary for direct bullion imports. The company has strong revenue and profit growth, declining borrowings and an integrated presence across India's gold and silver ecosystem. Investors may consider the IPO as a potential long-term investment opportunity

 

Another brokerage firm, Swastika, noted that Augmont Enterprises is an integrated precious metals provider, combining physical infrastructure with digital platforms for gold and silver. “Suitable for listing gains, with potential for medium- to long-term growth, although investors should remain cautious about low margins and customer concentration,” the brokerage firm said.

 

However, in terms of risk, the brokerage noted that the business is highly dependent on two online platforms; any disruption can impact operations. Further, reliance on third-party payment gateways exposes the company to transaction-related risks. 

 

Augmont Enterprises IPO GMP, lot size 

 

Augmont Enterprises shares are commanding a robust premium in the unlisted market, according to grey market trackers. As of 09:43 AM, Augmont Enterprises shares traded at ₹1,088 in the grey market, reflecting a premium of ₹300 or 38.07 per cent over the upper price band.

 

Investors can bid for a minimum of 19 equity shares and in multiples thereof. As per the details, 50 per cent has been reserved for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs), and the remaining 35 per cent for retail investors.

 

The equity shares of Augmont Enterprises are proposed to be listed on the BSE and NSE on or around August 31.

 

Nuvama Wealth Management Ltd. is the book-running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.