Greenhitech Ventures IPO sees robust response on Day 1. Check subscription, GMP and other details

The SME IPO of Greenhitech Ventures is seeing robust response from investors with an overall subscription of 5 times so far on the first day of the bidding process.

The issue received bids for over 60 lakh shares against just 12 lakh shares on offer.

In the unlisted market, the company's shares are trading with a GMP of Rs 15. This compares with an offer price of Rs 50 apiece, indicating healthy gains for investors on debut if the trends sustain.

The net proceeds of around Rs 6 crore from the public offer will be used for working capital requirements, general corporate purposes, and public issue expenses.

Greenhitech Ventures is engaged in trading various petroleum-based products for different categories of industries based on their requirements. This includes the supply of biodiesel and light-density oils.

The company is also engaged in operation and maintenance as a job for ethanol manufacturing in government-owned distilleries. It understands the market needs and upgrades its team constantly with growing technology and market trends.

Also Read: Greenhitech Ventures IPO opens today: Check issue size, price band, GMP and other details

The company also provides business solutions and services to consumers of fuels and other alternative materials across India.

India’s economic growth is closely related to its energy demand, therefore, the need for oil and gas is projected to increase, thereby making the sector quite conducive for investment. India retained its spot as the third-largest consumer of oil in the world as of 2022.

The industry is expected to attract a $25 billion investment in exploration and production by 2022. India is already a refining hub with 23 refineries, and expansion is planned for tapping foreign investment in export-oriented infrastructure, including product pipelines and export terminals. India’s crude oil production in FY23 stood at 29.2 mmt.

For the period ended January 2024, the company clocked revenues of Rs 3.35 crore and net profit of Rs 35 lakh.

Beeline Capital Advisors is acting as the lead manager for the issue and Skyline Financial Services is the registrar.