The Vadodara-based FMCG company allotted 56.25 lakh shares to 11 anchor investors at a price of R320 apiece, it said in a stock exchange announcement.
The institutions that bid shares in the anchor book included Birla Sun Life Insurance, ICICI Prudential Life Insurance, BNP Paribas and Goldman Sachs India Fund, among others. The company has set a price band of R290-320 per share and aims to raise R400 crore through the IPO that opens on Wednesday and closes on Friday.
Manpasand Beverages has not fixed the number of shares it will issue as it will depend on the issue price it finalises after the IPO closes.
A back-of-the-envelope calculation indicates the company will sell close to 1.38 crore shares at the lower price band and 1.25 crore shares at the higher price band. After the IPO, the share of the promoter will be diluted by 17% while that of SAIF partners and Aditya Birla group will reduce by 7% and 1%, respectively.
Out of the IPO proceeds, Manpasand intends to use R153.23 crore to set up a new manufacturing facility in Haryana. In addition, the IPO funds would be utilised to set up a corporate office in Vadodara, modernisation of existing facilities in Vadodara and Varanasi, repayment of loans and other general corporate purposes.
Manpasand caters majorly to the rural and semi-urban markets. It produces several products under ‘fruit drink’ category, including ‘Mango Sip’. Kotak Investment Banking, IIFL Holdings and ICICI Securities are the financial advisors to the share sale of Manpasand.
This is the eight IPO of calendar 2015. Seven firms — UFO Moviez India, MEP Infrastructure Developers, Inox Wind, Adlabs Entertainment, Ortel Communications, PNC Infratech and VRL Logistics — have raised a total of R3,449.1 crore so far this year, data from Prime Database showed.