The initial public offering (IPO) of Gabion Technologies India, a company engaged in geotechnical engineering and infrastructure solutions, opened for subscription on Tuesday, January 6.
The issue will remain open for investors until January 8. The IPO has received a very strong response right from the first day.
As soon as the issue opened, it was fully subscribed, and by 11 am on the opening day, it was subscribed more than four times.
The total size of this IPO is ₹29.16 crore, and it has attracted significant interest, especially from retail and small investors.
The company has set a price band of ₹76 to ₹81 per share. This IPO is a fresh issue, which means that all the money raised will go directly to the company, and there is no offer for sale (OFS) by existing shareholders.
IPO Structure and Use of Funds
Under this IPO, Gabion Technologies is issuing 3.6 million (36 lakh) new equity shares. The funds raised from the issue will be used for several important purposes.
These include the purchase of new plant and machinery, meeting working capital requirements, and fulfilling general corporate needs.
Before opening the IPO to the public, the company raised around ₹8.2 crore from anchor investors. Some well-known anchor investors include HDFC Bank, 360-ONE Group, Neo Asset Management, and Tiger Strategies Fund.
These anchor investors were allotted around 10.22 lakh shares at the upper price band of ₹81 per share. Their participation has boosted investor confidence in the IPO.
Lot Size, Investment Amount, and Key Dates
The IPO has been structured with a lot size of 1,600 shares. Retail investors are required to apply for a minimum of two lots, which comes to 3,200 shares.
At the upper price band of ₹81, the minimum investment amount works out to approximately ₹2.59 lakh, making it a relatively high-ticket IPO for retail investors.
Subscription data for each day will be released after 10 am, and market participants are closely tracking these numbers. The IPO allotment is expected to be finalized on January 9.
After allotment, refunds will be initiated and shares will be credited to demat accounts by January 12.
Grey Market Premium (GMP) and Listing Expectations
There is a positive trend in the grey market for the Gabion Technologies IPO. According to data from Investorgain, the company’s shares are trading at a grey market premium (GMP) of around ₹30.
This is nearly 38% higher than the upper price band, indicating strong expectations of listing gains among investors.
Such a healthy GMP reflects strong demand and positive market sentiment ahead of the listing.
About Gabion Technologies India and Listing Details
Gabion Technologies India was founded in 2008 and specializes in the design, manufacture, and installation of gabions, geosynthetic materials, and rockfall protection netting.
These products are widely used in infrastructure development and environmental protection projects, including highways, railways, and slope stabilization works.
The company’s shares are expected to be listed on both the BSE and NSE on January 13. Given the strong subscription response and positive grey market signals, investors are hopeful for a strong debut on the stock exchanges.
