Unlisted shares of Teerth Gopicon Ltd are trading Rs 18 higher in the grey market, expecting a 16.22 per cent listing gain from the public issue
Teerth Gopicon IPO: The initial public offering of Teerth Gopicon Ltd, an engineering construction and development company, which was opened for public subscription on April 8, has already been oversubscribed. Till 11:18 am on the second day of bidding on Tuesday, the Rs 44.40-crore SME IPO received 2.65 times subscription, garnering bids for 1,00,60,800 shares against 37,99,200 shares on offer.
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The price of the Teerth Gopicon IPO has been fixed at Rs 111 per share for its initial public offering. The Ahmedabad-based company, which mainly focuses on roads, sewerage and water distribution projects, looks to raise up to Rs 44.40 crore from the SME public issue, the company said in a statement.
The category for non-institutional investors got subscribed 2.34 times while the portion for Retail Individual Investors (RIIs) attracted 2.96 times subscriptions.
The Teerth Gopicon IPO was opened on April 8. Its share allotment will take place on April 12, while the shares will be listed on NSE SME on April 16.
Teerth Gopicon IPO GMP Today
According to market observers, unlisted shares of Teerth Gopicon Ltd are trading Rs 18 higher in the grey market as compared with its issue price. The Rs 18 grey market premium or GMP means the grey market is expecting a 16.22 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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Teerth Gopicon IPO Details
The initial share sale opened for subscription on Monday and close on April 10, it added. The shares of the company will be listed on NSE’s SME platform Emerge.
The initial public offering comprises a fresh issue of 39.99 lakh equity shares of face value of Rs 10 each. It is a fixed-price issue.
The company proposes to use the net proceeds from the IPO to fund its expansion plans. It plans to utilise Rs 33.40 crore towards working capital requirements and Rs 10.24 crore towards general corporate purposes.
Investors can bid for a minimum of 1,200 equity shares and in multiples of 1,200 equity shares thereafter. The minimum investment is Rs 1.33 lakh.
Incorporated in 2019, Teerth Gopicon is engaged in the business of road construction, sewerage and water supply in Madhya Pradesh.
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The company has worked as a registered civil contractor for various central and state government departments and has also undertaken building works for the private sector.
The order book of the company as of January 31, 2024, is Rs 904.98 crore.
For the April-January period of FY2023-24, the company reported a net profit of Rs 7.84 crore and revenue of Rs 69.70 crore.
It reported a net profit of Rs 1.80 crore and revenue of Rs 39.15 crore in FY2022-23.
Interactive Financial Services Ltd is the sole book-running lead manager, while Bigshare Services is the registrar for the issue.
