The R1,665-crore IPO of auto-parts maker Samvardhana Motherson Finance (SMFL) will begin on Wednesday, billed as the largest private sector public issue in more than two years.
The company has set a price band of R113-118 for the issue that would close on May 4. SMFL’s IPO would be the largest private sector offer after JSW Energy mopped up about R2,700 crore through initial share sale in December 2009, according to market sources.
Institutional investors like First State Investments (Hong Kong), Ivy Pacific Opportunities Fund, Birla Sun Life, government of Singapore and Monetary Authority of Singapore have subscribed to the anchor investor portion of the company. According to a company release, the anchor investors have been allotted 1.93 crore equity shares at a price of R115 per share, aggregating to R222.03 crore.
The First State Asia Pacific Fund, a sub fund of First State Investments ICVC, through its depository The Royal Bank of Scotland, has been allotted 14.81 lakh equity shares (7.7% of the anchor investor portion). Two other sub funds of First State Investments ICVC have also been subscribed 17.39 lakh shares.
Meanwhile, Ivy Pacific Opportunities Fund and government of Singapore have been allotted 45.22 lakh shares (23.4% of the anchor investor portion) and 46.68 lakh shares (24.2% of the anchor investor portion), respectively.
Domestic institutional major Birla Sun Life, through its various funds, has been allotted 47.83 lakh equity shares. While the Monetary Authority of Singapore B has been allotted 8.70 lakh shares, the Monetary Authority of Singapore has been allotted 12.45 lakh equity shares.
The initial public offer, which opens on May 2, comprises a fresh issue of equity shares aggregating R1,344 crore and an offer for sale by Radha Rani Holdings amounting to R321 crore. This issue has been graded by Icra and has been assigned ?IPO Grade 4?, indicating above-average fundamentals.
The book running lead managers to the issue are Standard Chartered Securities (India) and J P Morgan India.