Presstonic IPO gets fully booked within hours of opening; details here

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Presstonic Engineering Ltd makes infrastructure products, metro rail rolling stock products, and metro rail signalling products. It also supplies well-known domestic and international OEMs that manufacture and service rail and metro rail rolling stock and signalling equipment, as stated in the company’s Red Herring Prospectus (RHP).

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As stated in the RHP, the company does not have any listed peer companies for comparison of performance.

Yermal Giridhar Rao and Herga Poornachandra Kedilaya are the company’s promoters.

Also Read: Presstonic Engineering IPO opens on Monday, price band set at ₹72. Should you apply?

Presstonic Engineering IPO details

Presstonic Engineering IPO, which is worth ₹23.30 crore, is completely a fresh issue of 3,236,800 equity share; there is no offer for sale (OFS) component, according to RHP.

The issue’s objectives are to finance capital expenditures for the purchase of more equipment and machinery, to fully repay certain loans taken out by the company, to satisfy working capital requirements, to cover issue costs, and to further general corporate purposes.

The Presstonic Engineering IPO’s book running lead manager is Finshore Management Services Limited, and the issue’s registrar is Cameo Corporate Services Limited. Nikunj Stock Brokers is the market maker for the Presstonic Engineering IPO.

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Presstonic Engineering IPO Subscription Status

Presstonic Engineering IPO subscription status is 5.31 times on day 1, so far. The issue received stellar response from retail investors who’s portion set was subscribed 8.89 times, and non-institutional buyers who’s portion was subscribed 1.73 times, according to data on chittorgarh.com.

The company has received bids for 1,63,16,800 shares against 30,73,600 shares on offer, at 12:31 IST, according to data on chittorgarh.com.

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Presstonic IPO GMP today

Presstonic Engineering IPO GMP today or grey market premium is +32. This indicates Presstonic Engineering share price were trading at a premium of ₹32 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Presstonic Engineering share price was indicated at ₹104 apiece, which is 44.44% higher than the IPO price of ₹72.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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Presstonic Engineering IPO review

“The company is in the business of Metro Rail/Infra related products manufacturing and marketing. It posted steady growth in its top lines for the reported periods, but sudden surge in its bottom lines from FY23 onwards raised eyebrows and concern over its sustainability. Based on super FY24 annualized earnings, the issue appears fully priced. Well-informed investors may park moderate funds for the medium to long-term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 11 Dec 2023, 12:52 PM IST