Ardee Industries IPO Opens Today; GMP Signals 15% Listing Premium

Ardee Industries' initial public offering (IPO) opened for subscription on Wednesday and will close on Friday, August 7. The company has fixed the price band at ₹50-53 per equity share, with investors able to bid in lots of 281 shares.

Ahead of the issue opening, the company raised ₹128 crore from anchor investors by allotting 2.41 crore equity shares at ₹53 apiece, the upper end of the price band. The anchor book saw participation from Bank of India Mutual Fund, Bengal Finance & Investment, backed by ace investor Ashish Kacholia, Winro Commercial (India), led by Rohit Kothari, The Wealth Company Alternates Trust, India Max Investment Fund, Cognizant Capital Dynamic Opportunities Fund, IMAP India Capital Investment Trust and Catalyst New India Fund.

The ₹425.37 crore IPO comprises a fresh issue of equity shares worth ₹320 crore and an offer for sale (OFS) of 1.99 crore shares by promoters Sandeep Aggarwal and Nikunj Aggarwal, who will each sell 99.87 lakh shares.

GMP Signals Positive Listing

The grey market premium (GMP) for the Ardee Industries IPO stood at ₹8 on Wednesday. Based on the upper price band of ₹53, the shares are expected to list around ₹61, implying a premium of about 15.09%.

Market observers noted that the GMP has remained on an upward trajectory over the past two weeks, fluctuating between ₹0 and ₹13, indicating improving investor sentiment ahead of the listing. However, investors should note that the grey market premium is an unofficial indicator and does not guarantee listing gains.

Use Of Proceeds And Key Dates

The company plans to utilise ₹220 crore from the fresh issue proceeds towards incremental working capital requirements, while ₹20 crore has been earmarked for debt repayment. The remaining funds will be used for general corporate purposes.

Under the allocation structure, up to 50% of the issue has been reserved for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs) and a minimum of 35% for Retail Individual Investors (RIIs).

The basis of allotment is expected to be finalised on August 10. Refunds and credit of shares to successful applicants' demat accounts are scheduled for August 11, while the company's shares are expected to list on the BSE and NSE on August 12.

Pantomath Capital Advisors is the book-running lead manager to the issue, while KFin Technologies has been appointed as the registrar.