Sahasra Electronics Solutions IPO: Electronic Manufacturer Shares Hit Upper Circuit After Debut At 90% Premium

The shares of Sahasra Electronics Solutions Limited made a big debut on the NSE SME platform, Emerge. When the stock went public on the National Stock Exchange, it was trading for Rs 537.7 per share, a 90 per cent increase from its Rs 283 initial public offering (IPO), on Friday, October 4.

Sahasra Electronics Solutions Ltd. shares hit a 5 per cent upper circuit at Rs 564.55 apiece after a spectacular debut.

Listing gains from IPO

Sahasra Electronics Solutions' initial public offering (IPO) required a minimum bid quantity of 400 shares. As soon as the stock began trading on the exchange, successful bidders who were awarded shares in the main issue would have profited by at least Rs 1,01,880 {(Rs 537 - Rs 283) x 400}.

IPO size, price band and structure

The initial public offering (IPO) of Sahasra Electronics Solutions, which was valued at Rs 186.16 crore, comprised two parts: a new issue of 60.78 lakh shares, totalling Rs 172.01 crore, and an offer to sell 5 lakh shares, valued at Rs 14.15 crore.

The IPO price range for Sahasra Electronics Solutions was set at Rs 269 to Rs 283 per share. The minimum lot size to apply for the NSE SME issue was fixed at 400 shares.

IPO subscription across categories

Between September 26 and September 30, there were over 122.16 times bookings for the Sahasra Electronics Solutions initial public offering (IPO). The net issue size of Sahasra Electronics Solutions was 43.75 lakh shares, and investors from all categories placed bids for over 53.44 crore shares.

Three separate quotas were booked: 260.83 times for non-institutional investors (NII), nearly 74.89 times for retail investors, and 100.8 times for qualified institutional buyers.

IPO's net proceeds use

At its new manufacturing facility in Bhiwadi, Rajasthan, the company intends to install more machinery with the funds raised through the public issue. Sahasra Semiconductors Private Limited, the company's subsidiary, will also utilise the funds to install more equipment and machinery. The proceeds will also be utilised for general corporate purposes and working capital needs.