Gabion Technologies, a manufacturer of gabions, rockfall protection systems and geosynthetic materials used in infrastructure and environmental protection projects, received an overwhelming response on the first day of its initial public offering (IPO). The issue was subscribed 57.33 times on Tuesday, January 6, reflecting strong investor appetite.
The company is looking to raise ₹29.16 crore through the IPO, which comprises 36 lakh equity shares priced in the range of ₹76–81 per share. The issue is being offered at the upper end of the price band.
On the opening day, investors bid for 14.77 crore shares against an offer size of 25.77 lakh shares, submitting a total of 35,763 applications. Retail investors led the demand, subscribing their portion 82.25 times, while the non-institutional investor (NII) segment was subscribed 69.23 times. The quota reserved for qualified institutional buyers (QIBs) was also fully subscribed at 1.47 times.
The IPO will remain open for subscription until January 8.
Strong investor interest was also visible in the grey market, where Gabion Technologies shares were trading at a premium of around 37%, up from about 33%, indicating positive listing expectations.
Ahead of the IPO launch, the company raised ₹8.28 crore through an anchor book on January 5 by allotting 10.22 lakh shares to eight anchor investors at the upper price band. Key participants in the anchor round included HDFC Bank, 360 ONE LVF Treasury Solutions Fund, Neo Dynamic Strategy Fund, Master Growth 369, SB Opportunities Fund and Tiger Strategies Fund. Vorton Opportunities Fund and Vikasa India emerged as the largest anchor investors.
The New Delhi-based company plans to use the IPO proceeds to meet working capital requirements, invest in plant and machinery, and for general corporate purposes.
Gabion Technologies manufactures a wide range of products such as double twisted steel wire mesh gabions, defence gabions, PP rope gabions, high-tensile rockfall protection nettings, reinforced geomats and flexible geogrids. Its clientele includes government bodies, contractors, private players and consultants engaged in geotechnical engineering, infrastructure development and ground improvement projects.
The IPO is being managed by GYR Capital Advisors as the merchant banker.
