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Teerth Gopicon IPO Day 3- Subscription Status



Teerth Gopicon Limited IPO Subscription Status


Teerth Gopicon Ltd., an engineering, building, and development company, has already received more subscriptions than it received for its first public offering, which was made available to the public on April 8. The Rs 44.40-crore SME IPO attracted 2.65 times as many subscriptions on the second day of bidding, resulting in offers for 1,00,60,800 shares versus the 37,99,200 shares on offer.


As of April 8th, the first day of subscription, the public issue had only received subscriptions for 0.61 times the offered shares in the retail investor category. The overall subscription rate stood at a meager 0.42 times. This indicated a lukewarm initial response from investors.


However, the scenario changed significantly on the last day of subscription. By April 10th, the issue witnessed a dramatic rise in subscriptions. According to the NSE Data as of 11:46 AM, the Teerth Gopicon IPO is now over-subscribed at 8.67 times.


Teerth Gopicon Limited operates primarily in the civil engineering sector, with a focus on building construction work, water supply, pipeline, sewerage network, sewerage treatment plant, and road work. The company has also made its mark as an EPC (Engineering, Procurement, and Construction) contractor, providing comprehensive services from detailed engineering to project execution.

 

The driving force behind the establishment of Teerth Gopicon Limited was to address the critical infrastructure gap in India. With a focus on sustainable development and quality construction, the company aimed to contribute significantly to the nation's growth. The need for improved roads, efficient water supply, and robust sewerage systems in Madhya Pradesh presented an opportunity for Teerth Gopicon Limited to apply its expertise and deliver solutions that would have a lasting impact on the community and the economy.

 

Teerth Gopicon Limited's journey from a modest proprietorship to a limited company is a testament to its commitment to quality, innovation, and nation-building. With a clear vision and strong leadership, the company continues to contribute to India's infrastructure landscape, paving the way for a more connected and developed nation.


IPO Subscription Status


Teerth Gopicon IPO has been subscribed 8.67 times so far on Wednesday, the last day of the bidding process. The public issue received bids for 3,46,87,200 equity shares as compared to the offer size of 39,99,600 shares, as per data available till 11:46 am. The IPO received 1,98,72,000 bids in the retail category, 1,48,10,400 bids in the Non-Institutional Investors (NII) category, and 4,800 bids in the Qualified Institutional Buyers (QIB) category, so far.


Teerth Gopicon Limited IPO Details


  • Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: April 8, 2024 to April 10, 2024).

  • Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Tuesday, April 16, 2024).

  • Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹10 per share).

  • Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹111 per share).

  • Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 1200 Shares).

  • Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 3,999,600 shares  (aggregating up to ₹44.40 Cr)).

  • Fresh Issue: A fresh issue of shares in an IPO refers to the creation and sale of new shares by a company to the public for the first time to raise capital. Unlike an Offer for Sale, where existing shareholders sell their shares, a fresh issue results in new funds going directly to the company, which can be used for various purposes such as expansion, debt repayment, or investment in new projects. This process dilutes the existing shareholding but does not provide an exit route for current investors. (Fresh Issue: 3,999,600 shares (aggregating up to ₹44.40 Cr)).

  • Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Fixed Price Issue IPO).

  • Listing At: An integral part of the IPO process is the listing. This refers to the day the company's shares officially begin trading on a stock exchange, such as the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE) in India. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: NSE SME).

  • Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: 1,899,600 (47.49%)).

  • Market Maker Shares Offered: Market Maker Shares in an IPO refer to the shares that a market maker commits to buy and sell to ensure liquidity for the stock once it starts trading on the exchange. Market makers are typically brokerage firms that agree to hold a certain number of shares of the new issue to facilitate trading and provide stability to the stock price. They play a crucial role in the SME (Small and Medium Enterprises) segment, where they help in price discovery and improve the liquidity of stocks by providing two-way quotes. (Market Maker Shares Offered: 200,400 (5.01%)).

  • Other Shares Offered: In an Initial Public Offering (IPO), a private company offers various types of shares to the public to raise capital. The two primary types of offerings in an IPO are Fixed Price Offering and Book Building Offering. In a Fixed Price Offering, the company sets a specific price for the shares, and investors know the exact price before they buy. On the other hand, a Book Building Offering involves a price range, and investors bid within this range. The final price is determined after considering all bids. Additionally, companies may allocate shares to different categories of investors, such as Retail Individual Investors (RIIs), Qualified Institutional Investors (QIIs), Non-Institutional Investors (NIIs), or High Networth Individuals (HNIs), and sometimes even employees as part of an Employee Stock Ownership Plan (ESOP). Each type of share offering and investor category has its own set of rules and allocation percentages during an IPO. (Other Shares Offered: 1,899,600 (47.49%)).


Conclusion


In conclusion, the Teerth Gopicon Limited IPO presents a compelling opportunity for investors seeking to diversify their portfolio with a stake in the engineering construction sector. With a consistent track record of revenue growth and a robust pipeline of projects, particularly in the infrastructure domain, the company stands as a testament to the potential of emerging players in the Indian market. The IPO, priced at INR 111 per share, reflects the company's confidence in its future prospects, supported by a strong order book and an experienced management team. While the construction industry is known for its cyclical nature, Teerth Gopicon's strategic focus on essential infrastructure such as roads, sewerage, and water distribution positions it well to weather market fluctuations. As with any investment, potential investors should conduct thorough due diligence, considering the company's financials, market conditions, and long-term growth strategy. However, for those looking to invest in a company with a solid foundation and a clear vision for growth, Teerth Gopicon Limited's IPO warrants consideration. Investors are advised to keep an eye on the company's performance post-listing to gauge the market's reception and the stock's subsequent trajectory.


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Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.



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