Astron Multigrain IPO sees tepid response, subscribed 0.91x on Day 2; retail portion oversubscribed

The initial public offering (IPO) of Astron Multigrain, which opened for subscription on Monday, continued to witness a tepid response as it was subscribed 0.91 times at the end of Day 02, with 25.10 lakh shares bid for against the 27.72 lakh shares on offer.
The retail portion was subscribed 1.53 times, while the non-institutional investor segment was booked at 0.28 times.
Astron Multigrain Issue Details
The ₹18.40 crore issue comprises a combination of a fresh issue of 0.23 crore shares aggregating to ₹14.74 crores and an offer for sale of 0.06 crore shares aggregating to ₹3.65 crores.
The price band has been fixed at ₹63 per share, while the lot size is set at 4,000 shares, requiring a minimum investment of ₹252,000 for retail investors. The SME IPO is proposed to list on the BSE SME platform, tentatively on Monday, December 08.
The company plans to utilize the proceeds from the issue for purchasing new machinery, meeting working capital requirements, and for general corporate purposes.
In other issue details, the Astron Multigrain IPO allotment of shares is expected to be finalized on Thursday, December 04. The company will initiate refunds on Friday, December 05, and the shares will be credited to the demat accounts of allottees on the same day following refunds.
Finaax Capital Advisors Private Limited is the book-running lead manager, and Bigshare Services Pvt. Ltd. is the registrar of the issue. The market maker of the company is Prabhat Financial Services Ltd.
Meanwhile, as per market sources, the grey market premium (GMP) for Astron Multigrain is nil, indicating that the stock might debut on the exchanges similar to its IPO or at a discount price.
About Astron Multigrain
Established in 2018, the company is into the manufacturing of instant noodles. It manufactures noodles on a contract manufacturing basis for Gokul Snacks Private Limited, which sells the products manufactured by the company under its trade name. It also manufactures noodles for its own brand sales, which are sold under the trade name ‘Astron’s Swagy Noodles.’
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Disclaimer: We advise investors to check with certified experts before making any investment decisions.