Abans Holdings IPO: Issue subscribed 28% on Day 2; QIB portion fully booked

The initial public offering (IPO) Abans Holdings was subscribed 28 per cent on the second day (Day 2) of bidding process. The issue received total bids of 35,27,260 shares against the issue size of 1,28,00,000 shares. The quota reserved for qualified institutional buyers (QIBs) was fully booked (1.01 times), retail individual investors (RIIs) got 23 per cent subscription and that of non-institutional investors (NIIs) was booked 13 per cent, by 5 pm on Tuesday. The issue would conclude on December 15.

The company has fixed the IPO price band at Rs 256-270 per share. The lot size of Abans Holdings IPO is 55 shares, for which one has to spend Rs 14,850. A retail individual investor can submit bids for up to 13 lots or 715 shares by spending Rs 1,93,050.

The issue comprises fresh issuance of equity shares of up to 38 lakh and an offer-for-sale (OFS) of up to 90 lakh equity shares by promoter Abhishek Bansal. He currently holds a 96.45 per cent stake in the company.

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Grey market premium

Market participants said Abans Holdings IPO grey market premium (GMP) was last seen at Re 1. It implied that the grey market expected the company to witness a muted listing at around Rs 271 (Rs 270 + Re 1).

Abans Holdings stated that proceeds from the IPO would be utilised towards investment in its NBFC (non-banking financial company) subsidiary, Abans Finance.

The company operates a diversified global financial services business. It currently has a presence in six countries including the UK, Singapore, UAE, China, Mauritius, and India.

Aryaman Financial Services is the sole book-running lead manager to the issue and Bigshare Services is the registrar.

The financial services firm posted a 35 per cent growth in profit for 2021-22 (FY22) on a yearly basis. However, revenues dropped significantly, by 52 per cent, to Rs 638.63 crore in the same period.

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