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IPO screener: Final day PB Fintech, SJS Enterprises, Sigachi Industries

K. S. Badri Narayanan | | Updated on: Nov 03, 2021
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Sigachi hogs limelight; PF Fintech subscribed 1.6 times

Today is the last day for subscription of PB Fintech, SJS Enterprises and Sigachi Industries.

Policybazaar IPO gets 54 per cent

The ₹5,710-crore IPO of PB Fintech, owners of Policy Bazaar and Paisa Bazaar, was subscribed 1.6 times on the second day. The price band of the issue is ₹940-980 a share and the lot size is 15 shares.

The offer comprises a fresh issue of ₹3,750 crore worth of equity shares and an offer for sale of about ₹1,960 crore by existing shareholders. While the retail investors portion received bids for 2.04 times, QIBs window saw bids for 2.08 times and HNIs 0.23 per cent.

Of the entire issue, as much as 75 per cent will be reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Anchor investors

On Friday, the issue garnered a little over ₹2,569 crore from anchor investors. The company has decided to allocate about 2.62 crore shares to 155 anchor investors at ₹980 apiece, aggregating to ₹2,569.37 crore.

Goldman Sachs, Nomura, BlackRock Global Funds, Morgan Stanley, Canada Pension Plan Investment Board, Fidelity, Abu Dhabhi Investment Authority, ICICI Prudential Mutual Fund (MF), SBI MF, Axis MF and UTI MF are among the anchor investors that have been allocated shares.

Interestingly, 11 insurance companies (nine life insurance companies and two health insurance companies) have participated in the anchor window.

Top insurers who got sizeable allocation in the anchor round include Bajaj Allianz Life Insurance Company (3,82,590 shares or 1.46 per cent of the anchor investor portion), HDFC Life Insurance Company (1.46 per cent), ICICI Prudential Life Insurance Company (1.46 per cent), SBI Life Insurance Co Ltd (1.46 per cent), Bharti AXA Life Insurance (0.82 per cent), Kotak Mahindra Life Insurance (0.82 per cent), CARE Health Insurance (0.39 per cent) and Max Bupa Health Insurance (0.39 per cent).

Proceeds of the fresh issue will be used towards enhancing visibility and awareness of the company's brands, to look for new opportunities to expand growth initiatives to increase the consumer base, including offline presence.

Also, the proceeds from the IPO will be used for funding strategic investments and acquisitions, expanding presence outside India and general corporate purpose.

SJS Enterprises IPO gets 51%

The ₹800-crore IPO of SJS Enterprises, which is entirely an offer for sale, was subscribed by 0.51 times on day two. The IPO price band is ₹531-542 and bids can be made for a minimum lot of 27 equity shares.

While retail investors portion received bids for one time, QIBs are yet to make a bid and HNIs recieved just 6 per cent.

SJS Enterprises, one of the leading players in the Indian decorative aesthetics industry, has allocated 44,28,023 shares at ₹542 a share, at the upper end of the price band, and raised ₹240 crore.

Among the foreign portfolio investors who participated in the anchor were Tara Emerging Asia Liquid Fund, Societe Generale, Nomura, Goldman Sachs and Citigroup. Domestic investors who participated in the anchor were Axis Mutual Fund, Franklin MF, Aditya Birla Sun Life Insurance, Avendus and Edelweiss.

Axis Capital Limited, Edelweiss Financial Services Limited and IIFL Securities Limited are the Book Running Lead Managers to the Offer.

₹125-cr Sigachi Industries IPO

Among the current IPOs, it was Sigachi Industries that hogged the limelight by subscribing over 23 times.

Sigachi Industries plans to mop up ₹125.43 crore at upper end of price band of ₹161-163 a share. It will issue 76.95 lakh equity shares through IPO.

While retail investors poured in money by subscribing 38.50 times, portions reserved for QIBs and HNIs received bids for 0.82 times and 16.99 times respectively.

Sigachi is going to utilise issue proceeds for capital expenditure; expansion of production capacity for microcrystalline cellulose (MCC) at Dahej & Jhagadia, Gujarat; and manufacturing of croscarmellose sodium (CCS), a modified cellulose used as excipient at Kurnool, Andhra Pradesh.

Currently, the company manufactures 59 different grades of MCC at manufacturing units in Hyderabad and Gujarat with an aggregate installed capacity of 11,880 metric tonnes per year.

Ahead of the issue, it raised ₹38 crore from two anchor investors - 3 Sigma Global Fund and Nexus Global Opportunities Fund.

Published on November 03, 2021

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