Rudra Gas Enterprise IPO: Issue oversubscribed on second day led by retail investors; GMP is rising

The Rudra Gas Enterprise IPO opened for subscription on Thursday, February 8 and closes on Monday, February 12. The price range for Rudra Gas Enterprise's IPO has been fixed at ₹63 each. The lot size of Rudra Gas Enterprise IPO consists of 2,000 shares. Investors can bid for at least 2,000 shares and multiples thereof. The issue price is 6.3 times the nominal value ₹10.

According to Red Herring Prospectus (RHP), the company is involved in a number of infrastructure-related activities. The company's main business activities include fiber optic cable networks, gas distribution network projects, and construction equipment and vehicle rental. The company offers comprehensive solutions for the municipal gas distribution industry. The company specializes in civil works, pipeline construction and operation and maintenance of pipeline networks for urban gas distribution.

Also Read: Rudra Gas Enterprise IPO announces price range ₹63 each; Review issue details, important dates, and more

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According to RHP, the company's listed player is Likhitha Infrastructure Limited (with a P/E ratio of 15.43).

The promoters of the company are Manjulaben Sureshbhai Patel, Kush Sureshbhai Patel and Kashyap Sureshbhai Patel.

Rudra Gas Enterprise IPO details

The IPO of Rudra Gas Enterprise comprises a fresh issue of a total of 22,48,000 shares ₹14.16 crore. This is a completely new problem and there is no supply component.

The proceeds from the new issue will be used for the following purposes to meet the company's overall objectives and working capital needs.

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The basis for allotment of shares in Rudra Gas Enterprise's IPO is expected to be completed on Tuesday, February 13 and the company will issue refunds on Wednesday, February 14 while the shares will be issued on the same day after the Refund will be credited to the demat account of the allottees . Rudra Gas Enterprise share price is expected to list on the BSE SME on Thursday, February 15.

The book-running lead manager of Rudra Gas Enterprise IPO is Beeline Capital Advisors Pvt Ltd and the registrar is Link Intime India Private Ltd. Spread X Securities is the market maker for the Rudra Gas Enterprise IPO.

Rudra Gas Enterprise IPO Subscription Status

The subscription status for Rudra Gas Enterprise IPO stands at 71.51 on the second day. The issue received positive response from retail investors whose portion was subscribed 116.64 times and non-institutional buyers whose portion was subscribed 26.26 times, as per data available on chittorgarh.com.

According to chittorgarh.com, the company has received offers for 15,24,56,000 shares against 21,32,000 shares offered.

Rudra Gas Enterprise's IPO subscription status was 18.87 times on the first day.

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Rudra Gas Enterprise IPO GMP today

Rudra Gas Enterprise IPO GMP or gray market premium is +40. Taking into account the upper end of the IPO price range and the current premium in the gray market, the estimated listing price of Rudra Gas Enterprise stock has been provided ₹103 per piece, which is 63.49% higher than the IPO price of ₹63.

Based on the gray market activity of the last five sessions, IPO GMP is pointing higher today and expects a strong listing. The lowest GMP is ₹20, while the highest is GMP ₹40th according to analysts at investorgain.com.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

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Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend that investors consult certified experts before making an investment decision.

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