The initial public offering (IPO) of Abans Holdings was subscribed 46 per cent on the third day of the bidding process today. The issue received bids for 58,37,480 shares against the issue size of 1,28,00,000 shares. The quota reserved for qualified institutional buyers (QIBs) was bid for 2.19 times, retail individual investors (RIIs) got 31 per cent subscription and that of non-institutional investors (NIIs) was booked 17 per cent, by 5 pm on Wednesday. The share sale will end on December 15.
The company has fixed the price band at Rs 256-270 per share. The lot size of Abans Holdings IPO is 55 shares, for which one has to spend Rs 14,850. A retail individual investor can submit bids for up to 13 lots or 715 shares by spending Rs 1,93,050.
The issue comprises fresh issue of equity shares of up to 38 lakh and an offer-for-sale (OFS) of up to 90 lakh equity shares by promoter Abhishek Bansal. He currently holds a 96.45 per cent stake in the company.
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Grey market premium
Market participants said Abans Holdings IPO grey market premium (GMP) was last seen at Re 0-1. It implies that the grey market expects the company to witness a muted listing at around Rs 271 (Rs 270 + Re 1).
Abans Holdings stated that proceeds from the IPO would be utilised towards investment in its NBFC (non-banking financial company) subsidiary, Abans Finance.
The company operates a diversified global financial services business. It currently has a presence in six countries including the UK, Singapore, UAE, China, Mauritius, and India.
Aryaman Financial Services is the sole book-running lead manager to the issue and Bigshare Services is the registrar.
The financial services firm posted a 35 per cent growth in profit for 2021-22 (FY22) on a yearly basis. However, revenues dropped significantly, by 52 per cent, to Rs 638.63 crore in the same period.
