The public offer of Craftsman Automation has received bids for 48.56 lakh equity shares compared to offer size of 38.69 lakh equity shares - a subscription of 1.26 times - on the second day of bidding.
The retail investors have put in 2.11 times more bids than the reserved portion, while the portion set aside for non-institutional investors has been subscribed 19 percent, the subscription data available on exchanges showed.
The reserved portion of qualified institutional buyers has subscribed 56 percent.
Craftsman Automation opened its Rs 823.7 crore public issue for subscription on March 15. The issue consists of a fresh issue of Rs 150 crore and an offer for sale of 45,21,450 shares by existing shareholders.
The company has already received Rs 247 crore from anchor investors on March 12, at the higher end of the price band of Rs 1,488-1,490 per share.
The issue is scheduled to be closed on March 17.
The company will utilise proceeds to repay debt.
Also read, our in-house research team's take on Craftsman Automation IPO
"Despite rich FY21 valuations (based on 9M FY21 annualized earnings), considering its visibility of topline growth, competitive edge, superior profitability as compared to peers, prudent cost management, return ratios, wide clientele spread across the globe, sound R&D base and technological progress, we recommend investors to subscribe this IPO," said LKP Securities.
Although the company has posted a fall in topline in FY20 due to BS 6 implementation, it has reported solid numbers in the nine months period ended December 2020 despite COVID-19 pandemic.
In the grey market, Craftsman Automation is available at a premium of 7-8 percent (Rs 110-120) over higher price band of Rs 1,490, as per the IPO Watch data.
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