Devson Catalyst’s SME IPO reached 27 times subscription on its second day, driven largely by high demand from retail investors. The company aims to raise nearly Rs 40 crore to fund a new manufacturing facility. The issue remains open until July 13, with shares currently seeing interest in the grey market at a premium over the Rs 118 upper price band.
The initial public offering (IPO) of Devson Catalyst Limited has witnessed strong participation from investors, with the issue being subscribed over 27 times by the end of its second day of bidding. According to data from the Bombay Stock Exchange (BSE), the company received bids for over 7 crore shares against an offer size of approximately 25.87 lakh shares. The IPO, which is listed on the BSE SME platform, is scheduled to close for bidding on July 13.
Retail investors have been the primary drivers of this subscription surge, with their reserved portion booked nearly 43 times. The non-institutional investor category, which includes high-net-worth individuals and corporate bodies, has also seen significant interest with a subscription level of about 27 times. Qualified institutional buyers, who typically bring professional assessment to such offerings, have subscribed 2.6 times their allocated quota.
Use of Proceeds and Business Expansion
The public offering consists of a fresh issue of 33 lakh equity shares, targeting to raise approximately Rs 39.39 crore, alongside an offer for sale of 3 lakh equity shares worth Rs 2.95 crore. The company has clarified that the primary objective of this fresh capital is to fund the construction of a new manufacturing unit. This expansion is aimed at increasing production capacity, though investors should note that the success of such projects depends on the timely completion of construction and subsequent efficient use of the new capacity. A portion of the funds is also earmarked for working capital needs to support ongoing operations.
IPO Structure and Listing Timeline
The price band for the issue has been fixed between Rs 112 and Rs 118 per share. For retail investors, the minimum application size requires an investment of approximately Rs 1.41 lakh, which is a standard requirement for many SME segment offerings. The company has allocated 50% of the issue to institutional investors, 15% to non-institutional bidders, and 35% to retail investors. Following the closure of the subscription window on July 13, the company is expected to finalize the basis of allotment by July 14, with the shares slated to debut on the BSE SME platform on July 16.
While market enthusiasm is reflected in current subscription numbers and unofficial grey market premiums, these figures are based on sentiment and do not guarantee listing day performance. Investors should track the final subscription numbers upon the issue’s closure and monitor the company’s future execution of its manufacturing expansion plans, which will remain a key factor for long-term business performance.