Megatherm Induction IPO Subscribed 56.35 Times on Day 2 – All You Need to Know

The initial public offering (IPO) of Megatherm Induction, a prominent small- and medium-sized enterprise (SME) in the manufacturing sector, has garnered significant attention from investors. As the public issue enters its final day of subscription on January 31, let’s delve into the key details and the overwhelming response it has received so far.

Company Overview: Megatherm Induction Limited specializes in the production of induction heating and melting products, utilizing electrical induction technology. A subsidiary of Megatherm Electronics Private Limited, the company manufactures a range of equipment for steelworks, including induction melting furnaces, induction heating devices, transformers, ladle refining furnaces, continuous casting machines, and more. Notably, it is also involved in the production of electric arc furnaces for the alloy and special steel industry.

Subscription Status: On the second day of bidding, Megatherm Induction IPO witnessed an astounding response with bids for 18,70,44,000 shares against the total offer of 33,19,200 shares. The subscription figures across different categories highlight the widespread interest: 87.75 times in the retail category, 1.53 times in QIB, and 56.15 times in the NII category.

Previous Day Performance: Recapping the first day, the retail category experienced a subscription of over 19.38, receiving 3,21,67,200 applications against the offered 16,59,600 shares. QIB and NII categories were subscribed over 1 time and 9.17 times, respectively.

Grey Market Premium (GMP): As of today, the Grey Market Premium for Megatherm Induction stands at ₹100 per share, reflecting a premium of 92.59% compared to its issue price of ₹108 per share. This GMP indicates the market’s perception of the company’s potential.

IPO Details: Megatherm Induction’s SME IPO is a book-built issue with a total size of ₹53.91 crores, comprising a fresh issue of 49.92 lakh shares. The IPO price band is set at ₹100 to ₹108 per share, and the minimum lot size is 1200 shares. Retail investors need a minimum investment of ₹129,600, while the minimum lot size for HNI is 2 lots (2,400 shares) amounting to ₹259,200.

Reserved Categories: Notably, not more than 50% of the issue is reserved for Qualified Institutional Buyers (QIB), with at least 35% allocated to retail investors and a minimum of 15% for Non-Institutional Investors (NII) or High Net Worth Individuals (HNI).

Anchor Investor Participation: The company successfully raised ₹15.36 crores from anchor investors on January 25, with notable participants such as Meru Investment Fund, Bengal Finance and Investment, and Chattisgarh Investments.

Key Dates and Market Participants: Hem Securities Limited serves as the book running lead manager for the Megatherm Induction IPO, while Bigshare Services Pvt Ltd is the registrar. Hem Finlease is the market maker. The allotment process is anticipated to conclude on Thursday, February 1, 2024, with the IPO slated to list on NSE SME on Monday, February 5, 2024.

By providing a more detailed and structured overview, your readers can better grasp the significant aspects of Megatherm Induction’s IPO and make informed decisions.