Drug research and development company, Syngene International received an astounding response to its initial public offering, assuring the company at least R528 crore. The public issue was subscribed a little over 32 times as of 6:40pm on the final day of bidding, stock exchange data showed.
Qualified institutional buyers (QIBs) bid for 20.58 crore shares against 40 lakh shares reserved for the category, data showed. The institutional investors’ book was subscribed 51.47 times.
This is in addition to 60 lakh shares allotted to 13 institutional investors in a pre-IPO placement last Friday. The company raised a total of R150 crore by allotting shares to Goldman Sachs Fund, Monetary Authority of Singapore, Government of Singapore, and ICICI Prudential Top 100 Fund.
The non-institutional category – comprising of high net-worth individuals (HNIs) – bid for 27.07 crore shares against 30 lakh shares reserved. The book was subscribed more than 90 times. Experts attributed the huge interest by HNIs to quality of the issuer and its track record, attractive margin funding and rise in grey markets
In grey market, the premium on Syngene’s shares were rose to R45 apiece on the final day compared with R30-35 on Tuesday. Grey market is a pseudo over the counter market where IPO shares are bought and sold before officially listing on a stock exchange.
The retail investor book was subscribed close to five times. Retail investors, whose investment should not exceed a total R2 lakh as per Sebi rules, bid for 3.32 crore shares against 70 lakh shares on offer.
Syngene, which is a subsidiary company of biotechnology firm Biocon, aimed to raise R528-550 crore by off-loading 2.2 crore shares which included 20 lakh shares for existing shareholders. The company had set a price band of R240-250 per share.
Post the IPO, the promoter and promoter group holding in Syngene would decline to 74.5% from 85.5%. Axis Capital, Credit Suisse Securities (India) and Jefferies India are the financial advisors to the issue.