Indian primary market activity is underway at full speed as two mainboard IPOs have concluded their final day of bidding with oversubscription. The Rays of Belief IPO wrapped up its bidding process, being subscribed more than 100x, and the Deepa Jewellers issue also saw active investor interest, achieving an overall subscription of over 42x.
Rays of Belief IPO: Subscribed more than 100x
The Rs 125 crore fresh issue was oversubscribed on the very first day of its bidding and concluded its offer, achieving a subscription of 107.71x. The non-institutional investor (NII) segment was oversubscribed 279.11 times, while the retail applicant category was subscribed 195.87 times.
Its qualified institutional buyers (QIBs) portion was subscribed 9.06x. The company had fixed its issue price band at Rs 227 to 239 per share, and as per trackers, its stock is trading in the unlisted markets at a premium of Rs 13 or 5.4%, suggesting a listing price of Rs 252, based on the upper end of the price band.
| Investor Category | Subscription (Day 3) |
| Qualified Institutional Buyers (QIBs) | 9.06x |
| Non-Institutional Investors (NIIs) | 279.11x |
| Retail Individual Investors (RIIs) | 195.87x |
| Overall | 107.71x |
However, readers must know that GMP is not an official metric to estimate the listing price and is highly vulnerable to market manipulation.
The company operated by Mom’s Belief had issued 52.30 lakh fresh equity shares of Rs 10 each. The IPO is being handled by Mefcom Capital Markets, while Kfin Technologies is the registrar for the issue.
Deepa Jewellers IPO: Oversubscribed 42.61 times
The jewellery manufacturer’s Rs 460 crore book build issue achieved an oversubscription of 42.61x. Deepa Jewellers IPO gained heavy traction in the NII segment, which was subscribed 105.96x, while the QIB portion also saw healthy participation with an oversubscription of 37x.
| Investor Category | Subscription (Day 3) |
| Qualified Institutional Buyers (QIBs) | 37.00x |
| Non-Institutional Investors (NIIs) | 105.96x |
| Retail Individual Investors (RIIs) | 18.55x |
| Overall | 42.61x |
The retail buyer category was subscribed to 18.55x by the end of the bidding window. The company had fixed its share price band at Rs 168 to Rs 177 per share. As per the latest update, the shares of Deepa Jewellers are trading in the unlisted markets at a premium of 10.17% or Rs 18.
This translates into a listing price of Rs 195, on the upper end of the price band. Of the total float, Rs 250 crore was raised through the issuance of 1.41 crore fresh equity shares, while the offer for sale component comprised Rs 209.72 crore as investors offloaded 1.18 crore shares of Rs 2 each.
Emkay Global Financial Services is the book-running lead manager of the offer, while Bigshare Services is the registrar to the issue.
Subscription timeline
Both Deepa Jewellers and Rays of Belief opened their IPOs for public bidding on September 1 and closed their bidding process on September 3. The companies are expected to conclude their share allotment process by September 4, and investors are likely to be credited with their shares and requisite refunds by September 7.
Deepa Jewellers and Rays of Belief are expected to list on the NSE and BSE on September 8.