The initial public offering (IPO) of Sahaj Solar has witnessed an overwhelming response from investors on its first day of bidding. The issue, which opened for subscription on Thursday, July 11, has been subscribed over 42 times by the end of the day, with retail investors leading the charge.
Sahaj Solar, a company involved in renewable energy solutions, is offering 29,20,000 equity shares with a price band of Rs 171 to Rs 180 per share. The total issue size is worth Rs 52.56 crore.
It is the retail investors who have shown the most enthusiasm for the Sahaj Solar IPO. The portion reserved for them has been subscribed a whopping 68.27 times. This indicates a strong demand for shares from small investors.
Qualified Institutional Buyers (QIBs) have also shown interest, with the portion allotted to them being subscribed 40.11 times. However, the response from High Networth Individuals (HNIs) has been relatively muted, with their portion subscribed only 10 times.
The grey market premium (GMP) for Sahaj Solar shares has also been on the rise, indicating strong investor interest. The GMP is the difference between the expected listing price and the issue price. Currently, the GMP for Sahaj Solar is around Rs 164, suggesting an expected listing price of Rs 344 per share.
However, it is essential to remember that the GMP is speculative and can fluctuate significantly. Investors should rely on their own research and analysis before making investment decisions.
What Does This Mean for Investors?
The strong subscription numbers for the Sahaj Solar IPO suggest that there is significant investor interest in the renewable energy sector. The company’s focus on clean energy aligns with the growing global emphasis on sustainability.
Investors who have managed to secure shares in the IPO might see good listing gains if the strong investor interest translates into a robust listing. However, it is crucial to approach investments with caution and consider the long-term prospects of the company rather than solely relying on short-term gains.
The allotment process for the Sahaj Solar IPO will be finalized by July 18, and the shares are expected to be listed on the National Stock Exchange (NSE) SME platform shortly thereafter. Before making any investment choices, investors should thoroughly research and evaluate their options.