IPO Screener: PB Fintech, SJS Enterprises and Sigachi Ind issues open today

K. S. Badri Narayanan | | Updated on: Nov 01, 2021
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Nykaa issue closes today; Fino Payments Bank enters second day

Three initial public offerings of PB Fintech, SJS Enterprises and Sigachi Industries will open for subscription on Monday. All these issues will close on Wednesday.

PB Fintech, owners of Policy Bazaar and Paisa Bazaar, is launching a Rs 5,710-crore initial public offering in the price band of Rs 940-980 a share. 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.

As much as 75 per cent of the issue 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 Rs 2,569 crore from anchor investors. The company allocates about 2.62 crore shares to 155 anchor investors at Rs 980 apiece, aggregating to Rs 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) participated in the anchor window.

Top insurers who got a 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 the company’s presence outside India and general corporate purposes.

SJS Enterprises to raise Rs 800 crore

SJS Enterprises' offer is entirely an offer for sale of up to Rs. 710 crore by Evergraph Holding Pte Ltd; and up to Rs 90 crore by KA Joseph. The IPO price band is Rs 531-542.

Bids can be made for a minimum lot of 27 equity shares.

Rs 240-crore from anchor investors

SJS Enterprises, one of the leading players in the Indian decorative aesthetics industry, has allocated 44,28,023 shares at Rs 542 a share at the upper end of the price band, and raised Rs 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 Ltd, Edelweiss Financial Services Ltd and IIFL Securities Ltd are the Book Running Lead Managers to the offer.

Rs 125-cr Sigachi Industries IPO

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

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 tonnes per year.

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

Nykaa subscribed almost 5 times

The IPO of FSN E-Commerce Ventures, a multi-brand beauty, personal care and fashion platform under Nykaa, was subscribed fully 4.82 times, thanks to a strong response from retail and QIB investors. The price band of the issue is ₹1,085-1,125 a share. The issue will close on November 1 and the market lot is 12 shares.

The IPO comprises fresh issue of shares worth ₹630 crore and an offer for sale of shares worth ₹4,721.92 crore by several selling shareholders, including the promoters and investors.

While the retail portion was subscribed 6.32 times, the non-institutional investor category received bids worth 4.17 times. The qualified institutional buyer category was subscribed 4.72 times and the employees portion saw 1.18 times subscription.

Anchor investors

Ahead of the issue on Wednesday, FSN E-Commerce Ventures mopped up ₹2,396 crore from 174 anchor investors. The company has finalised allocation of 2.13 crore shares to anchor investors at ₹1,125 a share, at the upper end of the price band.

The marquee investors included Blackrock Global Funds, BEST Investment Corporation, Emerging Markets Growth Fund, Fidelity Funds, Government Of Singapore, Canada Pension Plan Investment Board, T Rowe Price, JP Morgan, Aberdeen Abu Dhabi Investment Authority, CLSA, Goldman Sachs, and Monetary Authority of Singapore.

Fino Payments Bank

The Rs 1,200-crore Fino Payments Bank IPO was subscribed by 0.51 times. Today is the second day and the issue closes on Tuesday. The price band for the IPO will be ₹ 560-577. Market lot is 25 shares.

The issue so far has been subscribed 0.51 times. While the retail investors portion was bid 2.73 times, QIBs are yet to make a bid, while HNIs bid by just 5 per cent. The portion reserved for employees has received 25 per cent.

The IPO comprises a fresh issue of Rs 300 crore and an offer-for-sale (OFS) of 1.56 crore equity shares by promoter Fino Paytech.

Anchor investors

Fino Payments Bank, ahead of the IPO, raised Rs 538 crore from 29 anchor Investors on Thursday. According to a stock exchange notification, marquee investors such as Fidelity, HSBC Global, Pinebridge, Birla Mutual Fund, Motilal Oswal, TATA Mutual Fund, SBI Life, Invesco, BNP Paribas and Societe Generale, among others, have been allotted shares.

According to the IPO papers, 75 per cent of the IPO will be allocated to institutional investors. Non-institutional investors comprising high net worth individuals, retail shareholders and employees can invest in the remaining 25 per cent of the book.

Promoter Fino Paytech is backed by marquee investors, including Blackstone GPV Capital Partners (Mauritius) VI-B FDI, Intel Capital Corporation, ICICI Bank, International Finance Corporation, HAV3 Holdings (Mauritius) and Bharat Petroleum Corporation.

Published on November 01, 2021

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