Teamtech Formwork Solutions' ₹50.15-crore SME IPO received a positive response on its first day of bidding, crossing the 49% subscription mark as of 4:45 pm on Tuesday, 19 May. According to data from Chittorgarh, the offer received 28.16 lakh bids against 56.94 lakh shares on offer, with the issue being subscribed 0.49 times. The qualified institutional buyer (QIB) quota was booked 0.65 times, while the non-institutional investor (NII) segment received 0.79 times and the retail investor portion was subscribed 0.35 times.
The IPO is entirely a fresh issue of 0.80 crore shares priced in the band of ₹61 to ₹63 per share. Since there is no offer for sale (OFS) component, all proceeds will be received directly by the company. The issue is reserved with 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. Teamtech Formwork Solutions plans to utilize the funds for capital expenditure towards machinery and plants for a new manufacturing unit, repayment of borrowings, working capital requirements, and general corporate purposes.
Of the total ₹50.2 crore IPO proceeds, ₹14.27 crore has already been raised through issuance of 22.66 lakh shares to seven anchor investors including Finavenue Capital Trust, Invicta Capserv, Navbharat Investment Trust, and Darwin Evolution Growth Fund. The company plans to spend ₹11.92 crore of IPO proceeds for purchase of plant and machineries for expansion of new manufacturing unit. The proposed installation of additional plant and machinery is expected to augment the company's manufacturing capacity by approximately 67,392 square meters, leading to the total capacity of approximately 1,03,392 square meters.
Headquartered in Hyderabad, Teamtech Formwork Solutions operates on a business-to-business (B2B) model, manufacturing, refurbishing, and renting modular T-formwork and customised formwork systems for the construction industry. The company's product portfolio includes modular T-formwork systems, customised panels and supporting components used for vertical concrete structures such as walls, bridges, tanks, foundations and shafts. It also provides modular T-formwork systems with customised design, engineering, technical support, refurbishment, and rental solutions for vertical concrete structures. Currently, the company operates a manufacturing facility at Bolaram and has been allotted an industrial land parcel by TSIIC to enhance production capabilities.
The grey market premium (GMP) for Teamtech Formwork Solutions IPO stands at nil, indicating that shares are trading at par with the offer price in the unofficial market. This means the listing could occur at neither a premium nor a discount. The IPO will remain open for bidding until Thursday, 21 May, with allotment expected to be finalised on 22 May. The listing is scheduled for next week on 26 May. The IPO is scheduled to close on May 21, while the grey market premium indicates shares are trading at par with the offer price.
