IPO Wrap, July 30: NSDL, Sri Lotus Developers offer sees strong demand on day 1

The primary market remained busy on Wednesday, July 30, with over five active mainboard initial public offerings (IPOs).

Three mainboard IPOs, namely National Securities Depository Limited (NSDL), M&B Engineering and Sri Lotus Developers and Realty opened for subscription on Wednesday.

The other active issues include Aditya Infotech, Laxmi India Finance, and SME Kaytex Fabrics.

Till 5 PM, the ₹4,011 crore initial share sale received bids for 62,608,572 shares against 35,127,002 shares on offer, as per exchange data.

The category for Retail Individual Investors (RIIs) fetched 1.86 times subscription, while the quota for non-institutional investors received 2.83 times subscription. The portion for Qualified Institutional Buyers (QIBs) witnessed 0.84 times of booking.

The initial public offering (IPO) of up to 6,708,000 equity shares has a price range of ₹205-216 per share. The price range has been fixed at ₹760 to ₹800 per share. The company's shares will hit the secondary market on August 6.

The ₹792 crore IPO received bids for over 142,386,800 shares against 3.96 crore shares. On the first day of bidding, the retail portion of the IPO was booked 2.82 times as of 5 PM, with applications for over 5.57 crore shares against 1.97 crore shares set aside for the category.

The NIIs also showed the highest interest in IPO, as their quote was booked 3.10 times. The NIIs applied for 2.62 crore shares against 84.6 lakh shares reserved for them. The Qualified Institutional Buyers (QIB) applied for 5.98 crore shares against 1.1 crore shares set aside for them. The QIBs’ quota was booked 5.31 times by the end of the first day.

Sri Lotus Developers IPO, a book-built offer worth ₹792 crore, is a completely fresh issue of over 5.28 crore shares, amounting to ₹792 crore. Sri Lotus Developers IPO issue price was fixed at ₹140 to ₹150 per share. The minimum lot size for the issue is 100 shares, aggregating to an investment of ₹15,000 per lot.

The category for non-institutional investors attracted 0.66 times the subscription, while the quota for retail individual investors (RIIs) was booked 2.58 times.

Meanwhile, the portion booked for qualified institutional investors (QIBs) has not garnered any booking on the first day.

The issue, with a price band of ₹366 to ₹385, will conclude on August 1. At the upper end of the price band, the Gujarat-based company's market capitalisation is estimated at ₹2,200 crore.

The IPO is a mix of a fresh issue of equity shares worth ₹275 crore and an offer-for-sale (OFS) of ₹375 crore by promoters. Proceeds from the fresh issue will be used for purchasing equipment and machinery for the company's manufacturing facilities, payment of debt, working capital requirements, and general corporate purposes.

M&B Engineering is one of the country's leading Pre-Engineered Buildings (PEB) and Self-Supported Roofing providers in terms of installed capacity (103,800 MTPA related to PEB and 1,800,000 square meters per annum for Self-Supported Roofing).

The portion reserved for the non-institutional investors (NIIs) category was subscribed to 11.45 times, while the retail individual investors (RIIs) category saw a subscription of 20.06 times. The portion reserved for QIBs was booked 0.24 times on the second day.

The price band for Aditya Infotech has been set at ₹640-₹675 per share.

The ₹1,300 crore initial public offer is a mix of a fresh issuance of shares aggregating to ₹500 crore and an offer for sale (OFS) of shares worth ₹800 crore by promoters.

The capital raised will be used to the tune of ₹375 crore for payment of debt, while the rest will be utilised for general corporate purposes.

The category for non-institutional investors saw 0.52 times the subscription, while the quota for retail individual investors (RIIs) was booked 1.28 times. The portion booked for QIBs was subscribed to 0.45 times on Wednesday.

The Jaipur-based company seeks to raise ₹254.26 crore via fresh issuance of 1.84 crore shares and an offer for sale (OFS) of 56.38 lakh shares by promoters. The fresh issue proceeds will be used to beef up its capital base to meet future capital needs towards onwards lending and serve general corporate purposes.

Before the IPO, the company raised ₹75.51 crore from anchor investors, including Saint Capital Fund, BNP Paribas Financial Markets—ODI, Cognisant Capital Dynamic Opportunities Fund, Compact Structure Fund, India Max Investment Fund, Rajasthan Global Securities, and Holani Venture Capital Fund-I.