Manpasand Beverages’ initial public offering (IPO) was subscribed 0.06 times on the first day of three-day offering. Majority of the subscriptions came from the retail investors, while institutional investors and high net-worth individuals showed little interest.
The retail book was subscribed close to 0.31 times on day 1 of the offer, data from stock exchanges showed. Retail investors, whose investment should not exceed a total R2 lakh as per Sebi rules, bid for 4.26 lakh shares as against 13.79 lakh on offer.
The non-institutional category comprising of high net-worth individuals (HNIs) was subscribed 0.002 time. HNIs bid about 3,500 shares against 20.68 lakh shares reserved. The qualified institutional buyers’ (QIB) category saw no bids on day one.
Experts said Manpasand Beverages’ shares were quoting a premium of R5-10 per share in the grey market on Wednesday. Grey market is a pseudo over-the-counter market where IPO shares are bought and sold before officially listing on a stock exchange.
On Tuesday, the Vadodara-based FMCG company raised R180 crore by issuing shares to institutional investors in a pre-IPO placement. The company allotted 56.25 lakh shares to 11 anchor investors at a price of R320 apiece. The company has set a price band of R290-320 per share and aims to raise R400 crore from the public issue that closes on Friday.
Out of the IPO proceeds, Manpasand has proposed to use R153.23 crore to set up a new manufacturing facility in Haryana. Rest of the money would be used to set up a corporate office at Vadodara, modernization of existing facilities in Vadodara and Varanasi, repayment of loans and other general corporate purposes.
Kotak Investment Banking, IIFL Holdings and ICICI Securities are the financial advisors to the share sale of Manpasand.
This is the eight IPO of calendar 2015. Seven firms – UFO Moviez India, MEP Infrastructure Developers, Inox Wind, Adlabs Entertainment, Ortel Communications, PNC Infratech and VRL Logistics – have raised a total of R3,449.1 crore so far this year, data from Prime Database showed.