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Investors’ appetite for initial public offerings remains undiminished, as offers of both DOMS Industries and India Shelter Finance Corporation Ltd (ISFCL), that ended on Friday, were gobbled up by them. Against the issue size of ₹1,200 crore each, these IPOs (along INOX India) generated an interest of over ₹1-lakh crore.
While the IPO of DOMS Industries was subscribed 93.52 times on the last day of issue closing, that of ISFCL generated an interest of 36.71 times. INOX India IPO, that will close on Monday, was subscribed 7.14 times.
DOMS Industries, a stationery business company, received bids for 82.65 crore shares against 88.37 lakh shares on offer. While retail investors portion was subscribed 69.67 times, quota reserved for non-institutional investors received bids for 66.51 times and that of qualified institutional buyers saw even better bidding of 115.97 times. The employee quota also received bids for 29.21 times.
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The IPO comprised a fresh issue of ₹350 crore and an offer for sale (OFS) worth ₹850 crore. Net proceeds of the issue will be used to finance a new facility for a wide range of writing instruments, watercolour pens, markers and highlighters besides general corporate purposes.
As part of the IPO, the stationery major had raised ₹538 crore from anchor investors who included Abu Dhabi Investment Authority, Optimix Wholesale Global Emerging Markets, Ashoka Whiteoak Emerging Markets, Fidelity Funds, Goldman Sachs, Theleme India Master Fund and Belgrave Investment Fund.
Homing in on
The IPO of India Shelter Finance, which came out at a price band of ₹469-493, received bids for 66.75 crore shares against an offer of 1.79 crore shares.
While retail investors portion was subscribed 9.95 times, quota reserved for non-institutional investors received bids for 28.51 times and that of qualified institutional buyers 89.70 times. The offer consisted of a fresh issue of 1.62 crore shares worth ₹800 crore and an OFS of 81.13 lakh shares worth ₹400 crore.
As part of the IPO, the retail-focused affordable housing finance company raised ₹360 crore from anchor investors.
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As many as 38 investors participated in the anchor book, including prominent names such as Goldman Sachs, Massachusetts Institute of Technology, NHIT and Steinberg India. Mutual funds such as ICICI Prudential Mutual Fund, Nippon Life India, Kotak Mahindra Trustee, Axis Mutual Fund, UTI Mutual Fund, Mirae Asset, Whiteoak Capital, LGT Select Funds, Tata Mutual Fund, Franklin India, Motilal Oswal Mutual Fund, Edelweiss Trusteeship, Bandhan Financial Services, Quant Mutual Fund, and Axis Growth Avenues AIF 1 were also received shares in the anchor portion.
The company will use the proceeds worth ₹640 crore to meet its future capital requirements for lending and the balance for general corporate purposes.
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