Highness Microelectronics GMP
The grey market premium (GMP) for Highness Microelectronics SME IPO stood at Rs 20. Based on the upper price band of Rs 120, the estimated listing price is around Rs 140 per share, factoring in the current GMP. This indicates a potential listing gain of approximately 16.67% per share.
GMP refers to the grey market premium, an unofficial price at which IPO shares are traded in the informal market before their official listing on stock exchanges.
Details of the offer
This includes a fresh issue of 16.53 lakh shares and an offer for sale of 1.52 lakh shares. The face value of each share is Rs 10, with a price band set at Rs 114 to Rs 120 per share and a lot size of 1,200 equity shares. The company’s pre-issue share capital stands at 35.10 lakh shares, which will increase to 51.63 lakh shares post-issue, implying a market capitalisation of Rs 61.96 crore after the listing.
In terms of allocation, 5.11 lakh equity shares have been reserved for anchor investors, while 3.42 lakh shares are allocated to qualified institutional buyers. Non-institutional investors have been allotted 2.59 lakh shares, retail investors 6.02 lakh shares, and 91,200 shares have been earmarked for the market maker.
The company plans to utilise the net proceeds from the issue towards setting up an assembly line as part of its capital expenditure, meeting working capital requirements, repayment or prepayment of borrowings, and general corporate purposes.
Fintellectual Corporate Advisors Private Limited is acting as the book-running lead manager to the issue, while Skyline Financial Services Private Limited has been appointed as the registrar.Commenting on the development, Managing Director Gaurav Manjul Kejriwal said the IPO marks a key milestone in the company’s growth journey. He noted that the proceeds will help strengthen manufacturing capabilities through the addition of a new assembly line, improve working capital efficiency and optimize the capital structure.
About Highness Microelectronics
Highness Microelectronics has over two decades of experience and operates across the design, development, integration, assembly and manufacturing of digital imaging solutions. The company has built strong in-house capabilities and focuses on medical-grade monitors and customised imaging solutions, catering to sectors such as defence and aerospace, railways, healthcare and industrial automation.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)