The IPO declared by Swajas Air Charters for raising Rs.37.5 crores from the Capital markets received a warm response from the investors. The share was over subscribed after it was made available for subscription on September 28th. The previous price band was fixed between Rs.90-100. However later it was later reduced to Rs.84-90.
A total of 63.5 lakh equity share applications have been received for the IPO of only 44.6 lakh shares. This resulted in oversubscription of about 1.43 times of the actual offering by the company. This seems that it has been welcomed by the investors with this oversubscription taking place. The closing date was extended from September 28th to October 5th.
Swajas is a Chennai based non scheduled airline operator which services a fleet of fixed wing aircrafts as well as helicopters all over the country. The issue proceeds would be utilised by the company for its fleet expansion plans. Besides this the company plans to set up MRO/ Hangar facility and purchase office building for the company’s office. It also intends to boost up the company’s working capital with the issue proceeds. The listing will be the next lookout which is expected to get a good welcome upon listing.
Bell the Bull says: The markets are volatile and investing in any stock over the index may seem confusing for many and riskier too. It seems investing in an IPO for the moment can be a better alternative in this highly volatile markets.