Today is the last day to subscribe to the initial public offering (IPO) of HP Adhesives. The ₹126-crore HP Adhesives IPO, which opened for subscription on Wednesday, was subscribed 8.04 times so far, thanks to a strong response from retail investors.

The price band for the offer is at ₹262-274 a share and the market lot is 50 shares. At the end of day 2, the retail portion was subscribed whopping 40.29 times, while the non-institutional category received bids 1.90 times and QIBs 0.34 times.

The public offer comprises a fresh issue of 41.40 lakh equity shares (₹113.44 crore) and an offer for sale of 4.57 lakh equity shares (₹12.53 crore) by selling shareholders Anjana Haresh Motwani.

Anchor investors

On Tuesday, HP Adhesives raised ₹56.68 crore from three anchor investors – Coeus Global Opportunities Fund, 3 Sigma Global Fund and AG Dynamic Funds – by allotting 20.68 lakh shares at ₹274.

Also read: Data Patterns IPO subscribed 120 times, gets strong response from QIBs, HNIs

While 75 per cent is reserved for qualified institutional buyers, non-institutional bidders and retail investors can bid for 15 per cent and 10 per cent respectively.

Usage of funds

The company plans to use the issue proceeds for working capital requirements and expansion of production capacity at the existing manufacturing facility at Village Narangi (Maharashtra). The fresh issue money will also get utilised for expansion of existing installed capacities for existing product lines and addition of new products to the existing product portfolio.

Supriya Life: Retail Investors gung-ho

The ₹700-crore Supriya Lifesciences IPO, which opened for subscription to the public on Thursday, was subscribed over two times on Day 1 itself. The issue, which will close on Monday, comprises fresh issuance of shares worth ₹200 crore and an offer-for-sale of ₹500 crore by promoter Satish Waman Wagh.

While the price band has been fixed as ₹265-274 a share, investors can bid for a minimum of 54 shares. At the end of day 1, the retail portion was subscribed 11.84 times, even as QIBs yet to bid. The non-institutional category was subscribed by 0.66 times.

₹315 cr from anchor investors

The active pharmaceuticals ingredients manufacturer on Wednesday raised ₹315 crore from 18 anchor investors on Wednesday. The company has allotted 1,14,96,351 shares at ₹274 a share to marquee investors such as 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 participated in the anchor book.

Utility of funds

The fresh issue money will be utilised for capital expenditure requirements, and repaying of debts. 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.

RateGain IPO price ₹425

Shares of RateGain Travel Technologies Limited will be listed on Fri]day. The company has fixed the IPO price at ₹425 at the upper end of the price band ₹405-425.

Also read: CMS Info Systems’ IPO to open on December 21

The initial public offering (IPO) of travel tech startup RateGain was subscribed 17.41 times, with healthy demand across investor categories. While the retail portion was subscribed 8.08 times, QIBs and HNIs quota saw a subscription of 8.42 times and 42 times. Employee portion too subscribed fully at 1.37 times.

Ahead of the issue, RateGain had raised ₹598.83 crore in the anchor investment from 34 anchor investors at the upper price band of ₹425 a share. Some of the key anchor investors included — the government of Singapore, the Monetary Authority of Singapore, Nomura, ICICI Prudential Mutual Fund, SBI Life Insurance, Nippon Mutual Fund, Pinebridge, Axis Mutual Fund, Birla Mutual Fund and ICICI Prudential Life Insurance.

Related Topics