Parmeshwar Metal IPO booked 563.51 times, Davin Sons Retail issue subscribed 114.64x on final day of bidding

The initial public offerings of Parmeshwar Metal and Davin Sons Retail garnered massive demand from investors on the final day of bidding, i.e. January 6, subscribing 563.51 times and 114.64 times, respectively.

Parmeshwar Metal, which manufactures copper wire and rods by recycling copper scrap, launched IPO on January 2 to raise Rs 24.74 crore. The price band for the offer is Rs 57-61 per share.

Investors applied for 163.53 crore equity shares against offer size of 29.02 lakh shares via 4.38 lakh applications, the subscription data on the BSE showed.

Non-institutional investors remained at the top to boost Parmeshwar Metal IPO subscription numbers, buying 886.95 times their allotted quota, followed by retail investors who bought 595.99 times their reserved portion. Qualified institutional buyers also showed strong interest in the issue, picking 177.32 times the part set aside for them.

The Gujarat-based company intends to spend IPO funds for setting up a new manufacturing facility at Dehgam, for bunched copper wire and 1.6 MM copper wire rod. Further, the fresh issue money will also be utilised for furnace renovation for copper melting, working capital requirements, and general corporate purpose.

The maiden public issue of Davin Sons Retail , which makes and designs readymade garments including jeans, denim jackets, and shirts for other brands also received healthy demand from investors, subscribing 114.64 times on the final day today.

As per the subscription data on the BSE, investors put in bids for 18.29 crore equity shares against the issue size of 15.96 lakh shares via 69,101 applications. Retail investors bought 164.78 times their reserved portion, while institutional and non-institutional investors picked 76.91 times their allocated quota.

The Delhi-based company targets to mobilise Rs 8.78 crore via IPO at a price of Rs 55 per share. The net issue procceeds will be utilised for purchase of warehouse, requirement of working capital, and general corporate purposes.

Both Parmeshwar Metal and Davin Sons Retail will finalise the share allotment by January 7, while the trading in shares of both companies will commence on the BSE SME platform effective January 9.

Parmeshwar Metal IPO shares were available at around 65 percent premium, and Davin Sons Retail IPO shares at around 25 percent premium over the upper price band, the market observers said.