Technocraft Ventures IPO Draws Strong Demand as GMP Climbs on Day 2

The Technocraft Ventures IPO is attracting strong investor attention as its subscription period moves into its second day. The ₹252 crore public issue, which opened on August 7, is scheduled to remain available for investors until August 11, with the company offering shares in a price band of ₹200 to ₹212 apiece.

The issue combines a fresh share sale with an offer for sale (OFS), giving investors an opportunity to participate in the company's proposed listing on both the BSE and NSE.

Grey market premium gains momentum

One of the key talking points around the issue has been the movement in its grey market premium (GMP). According to the information cited in the LiveMint report, Technocraft Ventures shares were commanding a GMP of ₹21 on August 10.

The premium had risen significantly from ₹10 recorded earlier, indicating an improvement in grey-market sentiment during the IPO period. While GMP is often watched by investors for an indication of possible listing sentiment, it remains an unofficial market indicator and does not guarantee the actual listing performance of a stock.

At the upper end of the IPO price band, a ₹21 premium would imply a potential price of around ₹233 if the grey-market indication were to translate into the listing price. However, actual market performance after listing can differ considerably from grey-market expectations.

Subscription crosses multiple times the issue size

Investor participation has also remained strong. The issue had received bids amounting to several times the shares offered, with the overall subscription reaching 4.68 times by 4:36 PM on the second day of bidding, according to the report.

The retail investor category had been subscribed 4.03 times, while the non-institutional investor (NII) portion had received bids equivalent to 6.41 times the shares reserved for that segment.

Qualified institutional buyers (QIBs) had also shown substantial participation, with their portion subscribed 4.50 times.

The subscription figures suggest that demand has extended across different investor categories rather than being concentrated in just one segment.

What is being offered?

Technocraft Ventures plans to raise approximately ₹252 crore through the IPO. Around ₹202 crore is proposed to come from the fresh issue of shares, while approximately ₹50 crore will be raised through the offer-for-sale component.

The fresh issue means new shares will be issued by the company, whereas shares sold through the OFS are offered by existing shareholders.

The IPO is structured as a book-building issue and is intended to be listed on both major Indian stock exchanges, BSE and NSE.

Brokerage views remain positive

Analyst and brokerage opinions cited in the report have largely been supportive of the issue.

Anand Rathi pointed to the company's diversified order book, wider geographical presence and integrated EPC capabilities as factors that could provide visibility for future growth. However, it also considered the IPO fairly valued when compared with listed peers.

At the upper price band, Anand Rathi valued the company at a price-to-earnings multiple of 19.4 times, based on an annualised FY26 earnings per share of ₹14.39. The corresponding post-issue market capitalisation was estimated at approximately ₹8,397 million.

Sushil Financial Services also assigned an “apply” view to the IPO. Its assessment highlighted revenue and profit growth, the proposed use of funds for working-capital requirements linked to order-book expansion, relatively limited dependence on debt and the company's valuation compared with peers.

Beacon Capital Advisors and Swastika Investmart were also reported to have given the issue a “subscribe” recommendation.

IPO timeline and listing plans

Investors still have time to participate, as the Technocraft Ventures IPO is scheduled to close on August 11.

The basis of allotment is tentatively expected to be finalised on August 12. Bigshare Services Private Ltd has been appointed as the registrar for the issue, while Khambatta Securities is the lead manager.

If the proposed schedule remains unchanged, the company's shares are expected to begin trading on the BSE and NSE on August 14.

Should investors apply?

Technocraft Ventures enters the market with several factors working in its favour, including strong subscription levels, improving grey-market sentiment and positive assessments from several brokerage firms. Its order book, geographic expansion and EPC capabilities have also been highlighted as potential long-term strengths.

At the same time, investors should not view the GMP as a guaranteed listing-profit signal. The valuation assessment also indicates that the issue is not being offered at an obviously deep discount to comparable listed companies.

With subscription closing on August 11, investors evaluating the IPO may therefore want to consider the company's fundamentals, valuation and long-term growth prospects rather than relying solely on short-term grey-market movements.

The final listing outcome will ultimately depend on market conditions and investor demand once Technocraft Ventures begins trading on the exchanges.