The initial public offering (IPO) of UFO Moviez India was subscribed 0.11 times on first of the three-day offering led by institutional investors. The R600-crore offer will end on April 30. Investors submitted applications for 7.93 lakh shares on Tuesday, stock exchange data showed.
The institutional investors’ book was subscribed 0.22 times. Qualified institutional buyers (QIB) applied for 4.32 lakh shares against 19.51 lakh shares on offer.
The non-institutional category comprising of high net-worth individuals (HNIs) was subscribed 0.03 times with 55,296 shares bid as against 14.63 lakh shares on offer, data showed.
The retail book received 0.089 times demand of the shares reserved for the category. A little over 3 lakh shares were bid against 34.14 lakh shares on offer.
On Monday, UFO Moviez raised R180 crore by issuing shares to institutional investors in pre-initial public offering (IPO) placement. The New Delhi-based company issued 28.80 lakh shares to anchor investors at R625 apiece. The company has priced the issue in the range of R615-625 apiece.
The New-Delhi based Digital Cinema distribution company aims to raise a total of R600 crore through an offer for sale (OFS) and the proceeds will go to the existing selling shareholders, including the promoter.
Axis Capital and Citigroup Global Markets are financial advisors to the issue.
UFO Moviez is the sixth public issue on the main board this calendar. So far, five companies — Ortel Communications, Adlabs Entertainment, Inox Wind, VRL Logistics, and MEP Infrastructure — have tapped primary markets, cumulatively raising nearly R3,000 crore.
While domestic brokerages have recommended subscribing to the issue, investors did not show any urgency to submit their bids given the volatility in secondary markets. People familiar with the matter told FE described the first day response as tepid and may decide to apply on the final day – Thursday – depending on the movement of markets.
The premium on UFO’s shares in grey market today declined to R45-50 per share from R170-175 three days ago, and R210 about a week ago. Grey market is a pseudo over the counter market where IPO shares are bought and sold before officially listing on a stock exchange.