GNA Axles gets listed at 20% premium
The IPO of GNA Axles closed on 16th Sept and 10 days later, it made a smashing debut.
Today the stock got listed at Rs.248.50 on the BSE v/s offer price of Rs.207, a premium of 20%. It even went to a high of Rs.260 and is now ruling at Rs.250.
The IPO had received a very good response, subscribing almost 55 times. Non-institutional investors are the ones who drove the issue, with their portion subscribing 217 times, qualified institutional buyers subscribing 17 times while retail investors was at almost 12 times.
GNA Axles is a 23 year old auto component maker manufacturing rear axle shafts, spindles and spindle shafts for commercial vehicles, buses, off-highway vehicles, agricultural and construction equipments. It supplies products to OEMs and Tier-1 suppliers such as M&M, Escorts, John Deere, Tractors & Farm Equipment (TAFE), Automotive Axles, Meritor HVS AB and Dana. It has 2 manufacturing facilities in Punjab, with an aggregate annual capacity of 23 lakh rear axle shafts, of upto 165 kg input weight, 4 lakh other shafts and 3 lakh spindles.
Our verdict on the IPO was the it was too tightly priced, leaving very little gains on the table. Lets see how this stock settles after this initial listing euphoria; it is the sustainability of price which counts, not listing gains alone.