Craftsman Automation Limited went public through an Initial Public Offering (IPO) in March 2021. Here are the key details: The Craftsman Automation IPO GMP bidding period was from March 15, 2021, to March 17, 2021. The shares got listed on both BSE and NSE on March 25, 2021. The total issue size was ₹823.70 crores, with a price range per share of ₹1488 to ₹1490. Retail investors could apply for a minimum of 10 shares, requiring a minimum investment of ₹14,900. Axis Capital Limited and IIFL Securities Ltd managed the IPO, and Link Intime India Private Ltd handled the share allotment process.
What is an IPO?
An IPO, or Initial Public Offering, is when a company offers its shares to the public for the first time. This process allows investors to buy shares during the Craftsman Automation IPO GMP period and become part-owners of the company. For many companies, going public is a significant milestone that provides capital for expansion, repays debts, and enhances market presence.
Why Did Craftsman Automation Go Public?
Craftsman Automation, founded in 1986, decided to go public to raise capital for various purposes, including expansion, debt repayment, and strengthening its market position. By offering shares to the public, the company aimed to attract more investors and increase its financial resources to support its growth strategies.
How Does an IPO Work?
Issue Size Of Craftsman Automation IPO GMP
The issue size of an IPO refers to the total amount of money the company aims to raise. For Craftsman Automation, the IPO was a combination of fresh shares worth ₹150.00 crores and shares sold by existing shareholders amounting to ₹673.70 crores, totaling ₹823.70 crores.
Subscription Of Craftsman Automation IPO GMP
During the IPO period, investors can bid for shares. The subscription process involves investors expressing their interest by submitting bids within the specified price range. The demand for shares can vary, and based on this demand, the company allocates shares to investors.
Allotment Of Craftsman Automation IPO GMP
After the bidding period, the company allots shares to investors based on demand and availability. The allotment process ensures a fair distribution of shares among the applicants, considering factors like investor category and the number of shares applied for.
Listing Of Craftsman Automation IPO GMP
Once the shares are allotted, they are listed on stock exchanges, allowing investors to trade them. Craftsman Automation’s shares were listed on both BSE and NSE on March 25, 2021.
Price Band Of Craftsman Automation IPO GMP
The price band is the range within which investors can bid for shares. Craftsman Automation set a price range of ₹1488 to ₹1490 per share for its IPO.
Minimum Lot Size Of Craftsman Automation IPO GMP
The minimum lot size is the smallest number of shares that retail investors can apply for. In Craftsman Automation’s case, retail investors needed to apply for at least 10 shares, requiring a minimum investment of ₹14,900.
Latest Update on Craftsman Automation IPO GMP
As of now, Craftsman Automation’s stock price is ₹4,371.45. It reached a 52-week high of ₹5,513.65 and a low of ₹3,000.00. The Craftsman Automation IPO GMP (Grey Market Premium) was ₹30, indicating a 2.01% expected profit.
Must-Know Facts About Craftsman Automation IPO GMP
Reservation Of Craftsman Automation IPO GMP
The IPO offered shares to different investor categories:
- Qualified Institutional Buyers (QIBs): 28.57%
- Non-Institutional Investors (NIIs): 21.43%
- Retail Investors: 50.00%
Timeline Of Craftsman Automation IPO GMP
- IPO Opening Date: March 15, 2021
- IPO Closing Date: March 17, 2021
- Listing Date: March 25, 2021
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for the Craftsman Automation IPO was ₹30. GMP is an unofficial market where the shares of a company are traded before they are officially listed on the stock exchange. A positive GMP indicates a good demand for the shares and potential listing gains.
Promoter
Srinivasan Ravi, a mechanical engineer, founded Craftsman Automation. His vision and leadership have been instrumental in the company’s growth and success over the years.
Detailed Explanation of Craftsman Automation IPO GMP
To better understand the Craftsman Automation IPO GMP and its significance, let’s break down the key aspects in a more detailed manner.
What is GMP?
The Grey Market Premium (GMP) is the premium at which IPO shares are traded in the grey market before they are listed on the stock exchange. GMP reflects the market’s perception of the IPO’s potential performance. A higher GMP suggests a positive outlook and higher demand for the shares.
How is GMP Calculated?
GMP is calculated based on the difference between the grey market price and the IPO price band. For Craftsman Automation, the GMP was ₹30, indicating that the shares were expected to trade at a premium of ₹30 above the IPO price range of ₹1488 to ₹1490.
Why is GMP Important?
GMP is important for investors as it provides an indication of the potential listing gains. A positive GMP suggests that the shares might list at a higher price, offering investors an opportunity to earn profits on the day of listing.
Conclusion
Craftsman Automation’s IPO allowed investors to become part-owners of the company. Understanding IPO basics and considering factors like financials, industry trends, and company prospects are essential before investing. The Craftsman Automation IPO GMP provided an additional insight into the potential performance of the shares in the market.
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