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Indian bourses will witness another high profile listing today. Shares Supriya Lifescience, which fixed the IPO price at ₹274, will be listed at the bourses on Tuesday.
The ₹700-crore IPO saw an overwhelming response from all category investors. The issue was subscribed over 71.51 times. While the retail investors’ portion was subscribed 56 times, the quota allocated for QIBs and the non-institutional category saw a subscription of 161.22 times and 31.83 times.
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Supriya Lifescience IPO – Should you invest?
It is valued at 16.2 times FY21 EPS and will have market cap of around ₹2,200 crore at issue priceAccording to analysts, the stock is expected list with a strong premium. Grey market indicates that the stock is likely to list with a premium of 50-55 per cent, said analysts.
The IPO comprised a fresh issuance of shares worth ₹200 crore and an offer-for-sale of ₹500 crore by promoter Satish Waman Wagh.
₹315 crore from anchor investors
Ahead of the issue, the active pharmaceuticals ingredients manufacturer had raised ₹315 crore from 18 anchor investors. The company has allotted about 1.15 crore at ₹274 a share, the upper end of the price band 265-274. Among the marquee investors included Dovetail India Fund, Cohesion MK Best Ideas, Hornbill Orchid India Fund, Volrado Venture Partners Fund, Optimix Wholesale Global and Societe Generale. Besides, domestic investors such as Nippon Life, Aditya Birla Sun Life Insurance, Abakkus Growth Fund and Reliance General Insurance also invested in the stock through the anchor book.
Fund utilisation
The fresh issue money will be utilised for capital expenditure requirements, and debts repayment.
The company has reserved 75 per cent of its offer for qualified institutional buyers, 10 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.
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