The initial public offering (IPO) of SP Apparels was subscribed 2.63 times on Thursday, the final day of the issue. The company will raise R239 crore with the shares expected to be priced at the top end of the band of R258-268.
Till 5 pm on Thursday, bids had been received for 1.72 crore of the 65.56 lakh shares on offer.
Qualified institutional buyers (QIBs) bid for 42.83 lakh of the 19.39 lakh shares on offer, a subscription of 2.21 times. High Net worth Individuals (HNI) bid for 70.64 lakh of the 13.85 lakh shares reserved for them, bidding 5.1 times of their quota.
The retail portion was subscribed by 1.81 times with investors bidding for 58.65 lakh of the total 32.31 lakh shares offered for them.
On Monday, the company raised R71.74 crore from anchor investors including DSP BlackRock, Goldman Sachs India, Birla Sun Life Insurance, Morgan Stanley Mauritius, UTI-Balanced Equity Fund, UTI-Master Equity Plan Unit Scheme and Principal Trustee Co Pvt Ltd.
The IPO comprises a fresh issue of equity shares aggregating R215 crore and an offer for sale (OFS) of 9 lakh shares. Private equity player New York Life Investment Management India Fund, which at present holds a 10.5% stake in the company, will make a partial exit by selling half its stake.
For FY 2016, the company reported a net profit of R37.85 crore on a total revenue of R541 crore. The company proposes to utilise the proceeds of the issue to repay debt, open new stores for the sale of its “Crocodile” brand products and modernise manufacturing plants. The book running lead managers to the issue are Motilal Oswal Investment Advisors Private Limited and Centrum Capital Limited.