Inox Wind’s initial public offering (IPO) — the biggest primary market offering since December 2012 — was subscribed nearly 19 times on the third and final day of bidding, assuring the company of at least R1,000 crore in total from the issue as well as an offer for sale (OFS).
The issue was subscribed 0.09 times on Wednesday (day 1) and 0.59 times on Thursday (day 2), stock exchange data showed.
The institutional investors’ category was subscribed 35.67 times. Qualified institutional buyers (QIB) bid for 23.68 crore shares against 66.37 lakh shares on offer.
Merchant bankers said the issue received diverse and strong response from institutional investors, at the time of a downward trend in the secondary market and two public issues struggling to receive full subscription.
The non-institutional category was subscribed 35.37 times.
More than 17 crore shares were bid against 48.18 lakh shares on offer. The retail book was subscribed 2.13 times. Investors bid for 2.4 crore shares against 1.12 crore shares on offer. A discount of R15 was offered to retail investors. Inox had set a price band of R315-325 per share.
People familiar with the matter said institutions across the geographies — Asia, Europe and Americas —bid for shares. “The response was fabulous. Many long-only funds have participated in the issue,” said S Subramanian, MD & head – investment banking, Axis Capital. Inox’s shares are scheduled to list in the first week of April, Subramanian said.
Bank of America Merrill Lynch, Yes Bank, Axis Capital and Edelweiss Financial Services were financial advisors for the share sale.
On Tuesday, Inox had raised R306 crore by selling 94.25 lakh shares to institutional investors via anchor allotment. Shares were allotted at R325 per share to anchor investors.
Goldman Sachs India Fund, Swiss Finance Corp (Mauritius), Indus India Fund (Mauritius), IDFC Infrastructure Fund and Sundaram Mutual Fund A/C Sundaram Equity Multiplier are among the anchor investors.