NewsIPOFabtech Technologies and OM Freight Forwarders IPOs Show Divergent Subscription Trends on Day 2Fabtech Technologies and OM Freight Forwarders IPOs Show Divergent Subscription Trends on Day 2
Two IPOs entered their second day of bidding with varying results. Fabtech Technologies achieved a 70% subscription rate on its first day, aiming to raise Rs 230 crore with a price band of Rs 181-191. Its Grey Market Premium dropped from 18% to 1%. OM Freight Forwarders, on the other hand, saw strong demand with an overall oversubscription of 1.39 times. Its IPO includes a fresh issue of Rs 24.44 crore and an offer for sale of Rs 97.88 crore, priced at Rs 135 per share. OM Freight's Grey Market Premium stands at 5.93%.
*this image is generated using AI for illustrative purposes only.
The Indian IPO market witnessed contrasting performances as two initial public offerings (IPOs) entered their second day of bidding on Tuesday. Fabtech Technologies and OM Freight Forwarders showcased different subscription rates, reflecting varied investor interest in these offerings.
Fabtech Technologies IPO: Moderate Subscription
Fabtech Technologies' IPO achieved a 70% subscription rate on its first day. The company aims to raise Rs 230 crore through a fresh issue of 1.21 crore shares, with a price band set between Rs 181-191. The subscription breakdown for Fabtech Technologies was as follows:
- Retail investors: 71% of allocated shares
- Non-institutional investors: 46% of allocated shares
- Qualified institutional buyers: 77% of allocated shares
Interestingly, the Grey Market Premium (GMP) for Fabtech Technologies saw a significant drop from 18% to 1%, indicating a cooling of market enthusiasm. The company plans to utilize the IPO proceeds for working capital, acquisitions, and other corporate purposes.
OM Freight Forwarders IPO: Strong Oversubscription
In contrast, OM Freight Forwarders' IPO demonstrated robust demand, achieving an overall oversubscription of 1.39 times on its first day. The IPO structure includes a fresh issue of Rs 24.44 crore and an offer for sale of Rs 97.88 crore, with shares priced at Rs 135. The subscription details for OM Freight Forwarders were notably strong:
- Non-institutional investors: 4.03 times oversubscribed
- Qualified institutional buyers: 1.10 times oversubscribed
The Grey Market Premium for OM Freight Forwarders stands at 5.93%, suggesting a more positive investor sentiment compared to Fabtech Technologies. OM Freight intends to use the IPO proceeds to purchase commercial vehicles and equipment.
Comparative Performance
| IPO Details | Fabtech Technologies | OM Freight Forwarders |
|---|---|---|
| Total Subscription | 70% | 1.39 times |
| Price Band | Rs 181-191 | Rs 135 |
| Issue Size | Rs 230 crore (fresh issue) | Rs 122.32 crore (fresh issue + offer for sale) |
| Grey Market Premium | 1% | 5.93% |
As the IPOs progress into their second day, investors and market watchers will be keenly observing the subscription trends and final outcomes of these contrasting offerings in the Indian capital markets.
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