Augmont Enterprises shares make a decent market debut; stock list at 22% premium on NSE

Shares of Augmont Enterprises made a strong stock market debut on Monday, August 31 as the precious metal platform was listed at 961 on NSE, a premium of 21.95 per cent over its issue price of Rs 788. Similarly, stock settled with a premium of 21.32 per cent over the given issue price at Rs 956 on BSE Ltd.

According to the listing price, investors of Augmont Enterprises made a profit of nearly Rs 3,300 per lot allotted to them. However, the listing of Augmont Enterprises has been below expectations. Ahead of its debut, it was commanding a grey market premium (GMP) of Rs 285-290 apiece, suggesting a listing gains of 36-37 per cent for the investors.

The IPO of Augmont Enterprises was sold in the price band of Rs 750-788 apiece between August 21-25. The company sold the issue with a lot size or 19 equity shares and its multiples thereafter. It raised a total of Rs 825 crore via IPO, with issue being overall subscription of 105.78 times, fetching nearly 54.98 lakh applications and bids worth Rs 64,300 crore.

On an individual basis, the portion reserved for qualified institutional bidders (QIBs) saw subscription of 226.96 times, while the portion for non-institutional investors (NIIs) was subscribed more than 121.47 times. The allocations for retail investors and employee was subscribed 30.98 times and 21.14 times during the three-day subscription period, respectively.

Incorporated in October 2012, Mumbai-based Augmont Enterprises is an integrated gold and silver platform serving businesses and consumers across India and international markets. It operates across the gold and silver value chain, like procurement and refining, bullion trading, digital gold, jewellery manufacturing, international sales and technology support for gold-backed financial services.

Brokerage firms were mostly positive on the stock, suggesitng to subscribe to it. Nuvama Wealth Management Ltd, Intensive Fiscal Services, JM Financial Ltd and Motilal Oswal Investment Advisors are the book running lead managers of Augmont Enterprises IPO and MUFG Intime India is the registrar of the issue.