Presstonic Engineering's initial public offering (IPO) began today (Monday, December 11) and will conclude on Wednesday, December 13. The IPO price range for Presstonic Engineering is set at 72. The lot size for the Presstonic IPO is 1,600 shares. Investors can place bids for as few as 1,600 shares and in multiples of that number. The equity shares have a face value of 10 each, and the issue price is 7.2 times the face value.x

Presstonic Engineering Ltd manufactures infrastructure, metro rail rolling stock, and metro rail signalling products. According to the company's Red Herring Prospectus (RHP), it also supplies well-known domestic and worldwide OEMs that produce and service rail and metro rail rolling stock and signalling equipment.

According to the RHP, the company has no listed peer companies with which to compare performance. The company's promoters are Yermal Giridhar Rao and Herga Poornachandra Kedilaya.

Details on the Presstonic Engineering Initial Public Offering

According to RHP, the Presstonic Engineering IPO is a wholly new issue of 3,236,800 equity shares with no offer for sale (OFS) component. The goals of the issue are to finance capital expenditures for the purchase of additional equipment and machinery, fully repay certain debts taken out by the firm, satisfy working capital requirements, cover issue expenses, and further general corporate purposes. Finshore Management Services Limited is the book running lead manager for the Presstonic Engineering IPO, while Cameo Corporate Services Limited is the registrar. The market maker for the Presstonic Engineering IPO is Nikunj Stock Brokers.

Subscription Status for Presstonic Engineering's Initial Public Offering

So far, the Presstonic Engineering IPO subscription status has been 5.31 times on day 1. According to data on chittorgarh.com, the offer received a strong response from retail investors, who subscribed 8.89 times, and non-institutional buyers, who subscribed 1.73 times. At 12:31 IST, the company had received bids for 1,63,16,800 shares versus 30,73,600 shares on offer, according to statistics on chittorgarh.com.

GMP Presstonic IPO Today

Today's Presstonic Engineering IPO GMP or grey market premium is +32. According to investorgain.com, this means that the share price of Presstonic Engineering was selling at a premium of 32 on the grey market.

Taking into account the upper end of the Initial Public Offering pricing band and the existing grey market premium, the expected listing price of Presstonic Engineering shares was indicated at 104 per share, which is 44.44% more than the IPO price of 72. The term "grey market premium" refers to investors' willingness to pay more than the issue price.

Review of the Presstonic Engineering Initial Public Offering

"The company manufactures and markets Metro Rail/Infrastructure-related products." It posted consistent increase in its top lines over the reported periods, but a dramatic surge in its bottom lines beginning in FY23 aroused eyebrows and raised concerns about its sustainability. The issue appears to be fully valued based on super FY24 annualised earnings. "Informed investors can park moderate funds for medium to long-term gains," said Dilip Davda, a contributing editor at Chittorgarh.