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Every retail investor should apply for the Augmont Enterprises Limited IPO

Business Model

1) Procurement & Refining: Their first job is sourcing and refining gold and silver.

2) Bullion & Spot Trading: Their second job is bullion and spot trading under the name “Augmont Spot.” They provide the market price for metals and allow trading against those prices.

3)Digital Gold: Their third job is digital gold. They have a brand called Augmont Digital Gold for All to provide digital gold services. In short, the company’s main business is buying gold, selling gold, and providing a trading platform.

Let’s talk about the important dates for this IPO:

IPO Open Date: 21st August 2026 IPO End Date: 25th August 2026
Allotment Date: 27th August 2026
Refund/Shares Credit: 28th August 2026
Listing Date: 31st August 2026 (You will see the listing by the end of the month).

IPO Size & Lots:
The total size of the IPO is ₹825 crores.
Fresh Issue: ₹620 crores.Offer for Sale (OFS): ₹205 crores.
(Initially, the OFS was ₹180 crores, but the company increased it by ₹25 crores later.
This is why the total IPO size grew from ₹800 crores to ₹825 crores).

Price Band: ₹750 to ₹788 per share.
Retail Lot Size: 1 lot (19 shares) = ₹14,972.
Small HNI Lot Size: 14 lots (266 shares) = ₹2,09,608.
Big HNI Lot Size: 67 lots (1,273 shares) = ₹10,03,124.
Investor Quota: Retail gets 35%, HNI gets 15%, and QIB gets the remaining 50%.

Market Premium & Demand:
The Grey Market Premium (GMP) is currently running at More then 30%. If the GMP stays stable like this, we can expect a very good over-subscription for this IPO.

Financials (Positives & Negatives): The financials of this company look excellent, which is its biggest selling point.
a) The Positives :The strong financials make it a good option to apply for and Debt is almost zero (0.01%), which is the second-best positive point for this company.

b) The Negatives: profit margins are very low. They will likely stay low because this industry naturally operates on thin margins. The company will need a very large amount of working capital to run its daily operations.

AUGMONT ENTERPRISES LIMITED FINANCIALS

Key Financial Metrics & Valuations:

The valuation is decent—it is neither too high nor too low.
Market Cap: ₹6,580 crores
ROE (Return on Equity): 51.04%
ROCE (Return on Capital Employed): 40.27%
Debt to Equity Ratio: 0.01
RONW (Return on Net Worth): 49.52%
PE Ratio: 18.89EPS
(Earnings Per Share): ₹41.71

Promoter Holding Before IPO: 92.75%
Promoter Holding After IPO: 81.91%.

This makes it a very interesting IPO.

Talk to your financial advisor before applying for an IPO. I am not SEBI-registered, and I shared this information based only on my own knowledge.

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