Abans Holdings IPO ends with 1.10x subscription

Published on Dec 16, 2022 10:18

The initial public offer (IPO) of Abans Holdings received bids for 1,40,22,525 shares as against 1,28,00,000 shares on offer. The issue was subscribed 1.10 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 4.10 times. The Non Institutional Investors (NIIs) category was subscribed 1.48 times.

However, the Retail Individual Investors (RIIs) category was subscribed just 40%.

The issue opened for bidding on Monday (12 December 2022) and it closed on Thursday (15 December 2022). The price band of the IPO is fixed at Rs 256-270 per share.

The offer comprised fresh issue as well as offer for sales (OFS). Fresh issue comprised 38 lakh equity shares of face value of Rs 2 each, aggregating upto Rs 102.6 crore. The OFS comprised 90 lakh equity shares aggregating upto Rs 243 crore.

Promoter Abhishek Bansal has offered 90 lakh equity shares for sale in the OFS. The promoter and promoter group shareholding will decline to 72.09% post IPO from 97.42% pre-IPO.

The company proposes to utilize about Rs 80 crore from the net proceeds towards further investment in NBFC subsidiary, Abans Finance for financing the augmentation of its capital base to meet its future capital requirements. The net proceeds invested into the NBFC subsidiary will be utilized to grow their loan portfolio by reaching a larger client base. In addition, it expects to receive the benefits of listing of the equity shares on the stock exchanges and enhancement of the company`s brand name amongst existing and potential customers and creation of a public market for equity shares in India.

Abans Holdings is the financial services arm of the Abans Group and operates a diversified global financial services business providing NBFC services, global institutional trading in equities, commodities and foreign exchange, private client stock broking, depositary services, asset management services, investment advisory services and wealth management services to corporates, institutional and high net worth clients.

The company reported a net profit (after minority and share in associate) of Rs 27.28 crore and income from operations of Rs 284.90 crore in five months ended on 31 August 2022.