IC Electricals' ₹47.9 crore IPO reached 62 times subscription by its second day, driven by strong retail and non-institutional interest. The company provides engineering solutions to Indian Railways and the issue closes on July 7.
IC Electricals, a New Delhi-based manufacturer specializing in electronic equipment for the railway sector, has seen high investor participation in its initial public offering (IPO). As of July 6, the second day of the bidding process, the total subscription reached 61.83 times. Investors placed bids for over 21.46 crore equity shares, far exceeding the 34.71 lakh shares on offer to the public.
The strong demand is primarily led by non-institutional investors and retail buyers, who subscribed to their respective quotas 91.46 times and 91.69 times. Qualified institutional buyers, which include larger financial institutions, subscribed 3.1 times to their portion. This follows a successful first day where the IPO was subscribed 6.57 times.
IPO Structure and Financial Usage
IC Electricals is looking to raise a total of ₹47.9 crore through this fresh issue of 48.39 lakh shares. The company has fixed the price at ₹99 per share, which is the upper end of its price band. Prior to the public launch, the company secured ₹13.54 crore from anchor investors, including Pine Oak Global Fund, SageOne, Bengal Finance and Investment, Akalpya India Equity Fund, and Arthasanchay Growth Fund.
The company intends to use approximately ₹33.6 crore of the net proceeds to fund its working capital requirements, while the remaining balance is allocated for general corporate purposes. Given that the entire offering is a fresh issue, all funds will flow directly into the company to support its operational scale.
Sector Context and Investor Considerations
As a supplier to Indian Railways, the company operates within a specialized engineering segment. Investors should note that the company's future growth is linked to the capital spending cycles and modernization plans of the railway network.
A key monitorable for shareholders will be the company’s ability to efficiently manage its working capital, especially as it utilizes the new funds to support its business operations. While grey market premiums—often reported around 45% for this issue—can reflect current sentiment, they are unofficial indicators and do not guarantee future listing performance. Investors should focus on the company's long-term order book execution and its ability to maintain profit margins against raw material cost fluctuations common in the industrial goods sector. The subscription window closes on July 7, after which the process for share allotment and listing on the exchange will follow.