Arrowhead Seperation Marks Lukewarm Debut on BSE SME

Arrowhead Seperation Marks Lukewarm Debut on BSE SME

Arrowhead Seperation Marks Lukewarm Debut on BSE SME

Arrowhead Seperation Engineering made a modest entry into the stock market, listing on the BSE SME platform. Although the initial listing showed promise, with shares opening at ₹250, a 7.3% increase from the issue price of ₹233, the company’s shares experienced a downturn shortly after. By 10:05 IST, the share price had dropped, hitting a 5% lower circuit.

IPO Subscription and Price Details

The IPO for Arrowhead Seperation opened on November 16 and closed on November 20, setting a price band of ₹233 per share. The minimum subscription was set at 600 shares, with further subscriptions in multiples of this amount. The face value of each share was ₹10, pricing the issue at 23.3 times the face value. The IPO garnered significant attention, with the subscription status reaching 94.79 times on the third day. Retail investors showed particularly strong interest, subscribing 142.30 times their portion, while non-institutional buyers subscribed 46.02 times, as per chittorgarh.com data. The first day saw a subscription of 10.80 times, escalating to 31.44 times on the second day.

Utilization of IPO Proceeds and Market Comparisons

The IPO, valued at ₹13 crore, was entirely composed of a fresh issue of 558,000 equity shares, with no offer for sale component. The proceeds are intended for various purposes, including meeting working capital requirements, repaying NBFC loans, and other general corporate needs. The issue’s registrars are Cameo Corporate Services Limited, with Aryaman Financial Services Limited serving as the book running lead manager. Comparatively, Arrowhead Seperation’s listed peers include Kilburn Engineering Ltd and Praj Industries Ltd, with P/E ratios of 26.38 and 17.92 respectively.

Grey Market Performance and Listing Predictions

Before its listing, Arrowhead Seperation’s grey market premium (GMP) stood at +25, consistent for eight sessions, indicating a market willingness to pay a premium over the issue price. Based on the upper end of the IPO price band and the grey market premium, the estimated listing price was projected to be ₹258 per share, 10.73% higher than the IPO price. This ‘grey market premium’ reflects the investor sentiment and their readiness to pay a premium over the set issue price.

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