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Konstelec Engineers IPO sees 112-fold subscription surge

EditorEmilio Ghigini
Published 23/01/2024, 10:10 pm
© Reuters.

MUMBAI - Konstelec Engineers Ltd, a Mumbai-based engineering services provider, has witnessed a remarkable surge in investor interest for its initial public offering (IPO), with subscriptions exceeding the offer by more than 112 times as of today. The company, which serves sectors such as oil and gas and refineries, launched its IPO on Friday and has attracted significant retail attention.

The IPO, which has been open for subscription since last Friday, is due to close tomorrow, with the share allotment process set for this Thursday. Investors are eagerly anticipating the company's market debut slated for next Tuesday, January 30. Konstelec Engineers has set the price band for its shares at Rs 66-70.

The current trading in the grey market, where shares are being exchanged at a premium of Rs 57 over the offer price, reflects strong market expectations for the engineering firm. This premium suggests that investors are optimistic about the company's prospects.

Konstelec Engineers has stated that the majority of the funds raised from the IPO will be allocated to enhance working capital and to secure client collateral. This move is part of the firm's strategy to strengthen its financial position and support its expansive order book, which is indicative of the company's robust business pipeline.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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