Gajanand International IPO Subscribed 4.42 Times On Day Two

Gajanand International Ltd. launched its initial public offering on Monday to raise Rs 20.65 crore. The IPO is a fixed-price issue of 57.36 lakh shares. The price band for the IPO has been fixed at Rs 36 per share. Gajanand International IPO was subscribed 1.03 times on day one of bidding.

Retail investors can apply for a minimum of 3,000 shares, requiring an investment of Rs 1,08,000. High-net-worth individuals must bid for at least 6000 shares, amounting to Rs 2,16,000.

The SME IPO will close on September 11 and the allotment of shares is expected to be finalised by September 12. The company's shares are expected to be listed on NSE SME, with the tentative listing date set for September 16.

The IPO was subscribed 4.42 times as of 7:00 p.m. on Tuesday.

• Institutional investors: Nil.

• Non-institutional investors: 0.92 times.

• Retail investors: 7.92 times.

Fast Track Finsec Pvt. Ltd. is managing the issue as the book-running lead manager, while Skyline Financial Services Pvt. Ltd. will act as the registrar. Nikunj Stock Brokers is the market maker for this IPO.

As per the company's red herring prospectus, 50% of the net issue shall be available for allocation to Retail Individual Investors while the remaining will be allocated to investors other than Retail Individual Investors.

Established in 2009 and formerly known as Gajanand Cottex Pvt. Ltd., Gajanand International produces contamination-free and sustainable cotton. The company's product offerings include Mech Cotton, grown in Madhya Pradesh and Maharashtra, sown in June/July, and harvested from November to January.

Shankar Cotton, domestically grown variety and the most exported raw cotton in India. DCH cotton grown in Karnataka, Tamil Nadu, and Madhya Pradesh, sown in July-August, and harvested from December to March.

The company's vision is to being recognised as one of the top ten cotton producers by 2025.

The funds raised from the IPO will be allocated to ensure sufficient operational liquidity through working capital requirements, address various corporate needs under general corporate purposes, and cover costs associated with the issue process.