The public issue of Manpasand Beverages was subscribed 1.4 times on the final day, with bids pouring in from institutional investors. The overall issue — taking into account the pre-IPO placement — was subscribed 1.23 times, stock exchange data showed. The company will raise at least R400 crore from the issue to set up a new manufacturing facility in Haryana.
Qualified institutional bidders (QIBs) bid for 82.13 lakh shares against 41.37 shares reserved for the category, data showed. The non-institutional category – comprising of high net-worth individuals (HNIs) – bid for 7.83 lakh shares against a reservation of 20.69 lakh shares while the retail investors subscribed 15.96 lakh shares against 13.79 lakh shares reserved for the category.
The company sought to raise R400 crore and offered a lower price band of R290 per share and an upper price band of R320 per share. It had raised R180 crore through allotment of shares to anchor investors earlier in the week. Eleven institutions including Amundi Funds, BNP Paribas, Goldman Sachs India Fund, Birla Sun Life Insurance and ICICI Prudential Life Insurance were allotted shares in the pre-IPO at a price of R320 apiece.
“The book has seen very good response. This is the first deal in the fast moving consumer goods (FMCG) space after a long time and received interest from high quality domestic and foreign institutions, as well as retail investors,” said V Jayasankar, senior ED and Head – ECM, Kotak Investment Banking.
Apart from building a new facility, the company will also utilise the proceeds towards setting-up of a corporate office at Vadodara, modernisation of existing facilities in Vadodara and Varanasi and repayment of loans, an official statement said.