The book-built issue is entirely a fresh issue of 55,62,000 equity shares and will close on February 25. The price band has been fixed at Rs 43 to Rs 46 per share. At the upper end of the band, the company will command a pre-IPO market cap of around Rs 94.64 crore. The shares are scheduled to list on the BSE SME platform on March 2.
Grey market signals remain firm, with the IPO commanding a GMP of 29%. At the upper issue price of Rs 46, this translates into a potential premium of around Rs 13 per share, indicating an implied listing price in the range of Rs 59-60, subject to market conditions.
Strong retail and NII demand on Day 1
Subscription data shows heavy interest from retail investors and NIIs on the first day. The retail portion was subscribed 16.26 times, with bids received for over 3 crore shares against 18,48,000 shares reserved for the category.
The NII segment was subscribed 11.27 times. Within this, the bNII portion was subscribed 11.86 times, while the sNII segment was subscribed 10.09 times.
However, the QIB (excluding anchor) portion saw limited participation on Day 1, with subscription at 0.02 times. The QIB book will be closely tracked over the next two days, as institutional participation often picks up towards the close of the issue.
In total, bids were received for 3,89,85,000 shares against 36,96,000 shares on offer, with 5,577 applications recorded on Day 1.
The company had already raised Rs 7.29 crore from anchor investors on February 20 by allocating 15,84,000 shares. The anchor lock-in period ends in 30 and 90 days for different tranches.
IPO structure and investment size
The IPO offers 55,62,000 shares in total, of which 26,40,000 shares are reserved for QIBs, including 15,84,000 shares allocated to anchor investors. The NII portion comprises 7,92,000 shares, while 18,48,000 shares are reserved for retail investors. Additionally, 2,82,000 shares are reserved for the market maker.
Investors can bid for a minimum of 6,000 shares and in multiples of 3,000 shares thereafter. At the upper price band of Rs 46, the minimum investment for retail investors stands at Rs 2,76,000.
About the company
Accord Transformer & Switchgear, incorporated in 2014, is engaged in the design, engineering, manufacturing and supply of electrical power and distribution equipment. The company caters to sectors such as power transmission and distribution, renewable energy, industrial applications, infrastructure and EV charging networks.
Its product portfolio includes distribution transformers up to 2.5 MVA, power transformers up to 20 MVA, dry-type transformers and specialised transformers for solar and wind applications. It also manufactures low-voltage and medium-voltage control panels, vacuum circuit breaker panels and package substations.