Four Initial Public Offerings See Mixed Demand as Bidding Continues Ahead of Closing Date

Four stock offerings opened for public bidding on Thursday, 15 October, and recorded varied levels of interest by the second day on Friday, 16 October. All four public issues are scheduled to close on Monday, 19 October.

Subscription Details

Tonbo Imaging India drew the strongest demand, with its public issue subscribed 7.77 times overall. Non-institutional investors subscribed to 14.35 times their allotted portion, retail investors booked 7.12 times, and qualified institutional buyers booked 3.95 times. Bonfiglioli Transmissions reached 99% subscription, with non-institutional investors at 1.71 times, retail investors at 1.16 times, and institutional buyers at 16%. Sahajanand Medical Technologies saw an 82% subscription rate, driven by a 1.12 times booking from institutional buyers, 82% from retail investors, and a 51% increase in the non-institutional segment. Zetwerk Manufacturing Business recorded the slowest pace at 31% subscription, split between 37% for institutional buyers, 36% for retail investors, and 16% for non-institutional investors.

Grey Market Trends

Grey market premiums indicate varied listing expectations for each company. Tonbo Imaging shows a premium of plus 505, pointing to an estimated listing price of 1,205 rupees, which is 72.14% higher than the issue price of 700 rupees. Bonfiglioli Transmissions has a premium of plus 129, indicating an estimated listing price of 715 rupees compared to its issue price of 586 rupees. Sahajanand Medical Technologies records a premium of plus 22, pointing to an estimated price of 366 rupees against an issue price of 344 rupees. Zetwerk shows a premium of plus 7, suggesting an estimated price of 158 rupees versus its issue price of 151 rupees.

Issue Structures

Zetwerk includes a fresh share issue worth 2,830 crore rupees and an offer for sale of 14.45 crore equity shares, taking its total size to approximately 5,012 crore rupees. Sahajanand Medical Technologies is entirely an offer for sale of up to 1.38 crore equity shares by existing shareholders. Bonfiglioli Transmissions comprises an offer for sale of up to 4.32 crore equity shares by promoter Bonfiglioli S.p.A. Tonbo Imaging consists of an offer for sale of 1.22 crore equity shares by promoters and existing shareholders, meaning Sahajanand, Bonfiglioli, and Tonbo will not receive any proceeds from their respective offerings.

Context

Initial public offerings allow private companies to raise capital by issuing shares to the public for the first time or by letting existing investors sell their stakes. The grey market premium is an unofficial indicator that tracks how shares might perform when they officially start trading on stock exchanges. Subscription rates across different investor categories help gauge overall market confidence before the official listing date.