Patil Automation IPO Day 2 update: Fully subscribed, GMP hits 20%

Patil Automation IPO Day 2 subscription status: The issue has been fully subscribed with bids for 62,72,400 shares against 58,00,800 shares on offer

Patil Automation IPO Day 2 subscription status: The initial public offering (IPO) welding and line automation solutions company Patil Automation has entered the second day of public subscription and has received a decent response from investors so far. The issue has been fully subscribed with bids for 62,72,400 shares against 58,00,800 shares on offer, reflecting a subscription rate of 1.51, according to NSE data as of 2:20 PM.

Patil Automation IPO grey market premium (GMP)

The current GMP of Patil Automation shares indicate a positive listing for the IPO. According to sources tracking unofficial markets, the unlisted shares of Patil Automation were trading at ₹144, a premium of ₹24 or 20 per cent against the upper price band of ₹120.

 

Patil Automation IPO details

The SME issue will close for public subscription on Wednesday, June 18. The basis of allotment of shares is likely to be finalised on Thursday, June 19. Patil Automation IPO will be listed on the NSE SME platform tentatively on Monday, June 23. 

 

The company has set the price band in the range of ₹114 to ₹120, with a lot size of 1,200. A retail investor would need a minimum investment amount of ₹1,44,000 to bid for one lot at the upper price band. However, a high net-worth individual can bid for a minimum of two lots for ₹2,88,000.   ALSO READ | Last day! Aten Papers & Foam IPO ends today; check latest subscription, GMP

 

Purva Sharegistry is the registrar of the issue. Seren Capital is the sole book-running lead manager.

 

According to the red herring prospectus (RHP), the company intends to use the net issue proceeds for setting up a new manufacturing facility, partly repayment of certain borrowings availed by the company, as well as general corporate purposes. 

About Patil Automation

Incorporated in 2015, Patil Automation provides automation solutions to various industrial clients, primarily in the automation sector. It is engaged in designing, manufacturing, testing and installation of customised automation systems such as welding lines (spot welding, MIG and TIG), assembly lines, material handling machinery and special-purpose machineries, tailored to meet the specific requirements of our clients' production facilities.  The company's client base includes Automotive Original Equipment Manufacturers (OEMs), Tier I suppliers to Automotive OEMs and manufacturers of automotive components and sub-components, who seek to establish, expand, upgrade, modify or repair their production setup. It operates a manufacturing facility in the Pune district of Maharashtra.