The initial public offering (IPO) of Greenhitech Ventures Ltd, a small and medium enterprise (SME), launched today, Friday, April 12, and was quickly met with high demand from investors. The IPO was oversubscribed five times within hours of its debut, according to BSE data as of 12:10 pm.
The Greenhitech Ventures IPO received bids for 60.12 lakh shares, surpassing the 11.94 lakh shares available for public investors. The retail segment showed strong interest, with bids for 52.32 lakh shares, exceeding the 5.97 lakh shares set aside for this group by over eight times. The portion for non-institutional investors (NIIs) was also fully subscribed, with investors bidding for 7.8 lakh shares compared to the 5.97 lakh shares allocated.
The IPO comprises 12.6 lakh equity shares with a face value of ₹10 and is entirely a fresh issue, totaling ₹6.3 crore in size. Shares are priced at ₹50 per unit, with a minimum lot size of 3,000 shares for retail investors (₹1.5 lakh) and a requirement of two lots (6,000 shares) for non-institutional investors (₹3 lakh).
The IPO subscription window remains open from April 12 to April 16. Share allotment status is expected to be finalized on April 18, and shares are scheduled to be credited to successful bidders’ Demat accounts by April 19. The stock’s tentative listing date on the BSE SME platform is April 22.
Greenhitech Ventures plans to use ₹450 crore of net proceeds to address working capital needs. Additional funds will go toward general corporate expenses and costs associated with the public offering.
Greenhitech Ventures operates in the trading of various petroleum-based products for different industries, including biodiesel and light-density oils. The company also engages in ethanol manufacturing as a job worker for government-owned distilleries and provides services and business solutions to consumers of fuels and alternative materials across the country.
The company’s revenue for the fiscal year ending in March 2023 declined to ₹25 crore compared to ₹66.1 crore in FY22 and ₹40 crore in FY21. Profit after tax (PAT) for FY23 was ₹57.23 lakh, down from ₹1.35 crore in FY22 and ₹24.39 lakh in FY21.
Despite recent declines in revenue, Greenhitech Ventures continues to attract investor interest as it operates within the growing alternative fuels and petroleum-based products market.
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