Friday saw the initial public offerings of six companies from a wide range of sectors closed with overwhelming response from investors across classes. In fact, as against the cumulative IPO size of ₹4,510 crore, the six issues received bids worth ₹1.39 lakh crore.
Among them, the biggest draw were Rentomojo, Karamtara Engineering and LCC Projects, while Steamhoue India, Asset Reconstruction Company (India) Ltd (Arcil) saw a modest response even as the issue of Manipal Payment and Identity Solutions sailed through.
Rentomojo
The ₹1,256-crore IPO of Rentomojo attracted bids for 157.49 crore shares against 2.18 crore shares on offer, which means 72.88 times. The IPO of online furniture and appliance rental platform, which came out with a price band of ₹384-404, saw heavy attraction from qualified institutional buyers (QIBs) with a subscription of 177.29 times followed by non-institutional investors or HNIs 67.93 times) and retail investors 15.59 times. Even the employee quota saw strong bids for nearly 21.03 times.
The issue comprised a fresh issue of ₹150 crore and an offer for sale (OFS) worth ₹1,106 crore. From the fresh issue, the company will allocate ₹70 crore towards repayment or prepayment of borrowings and ₹42.5 crore towards lease rentals or licence fees for warehouses and experience stores, with the remainder for general corporate purposes.
Ahead of public issue, Rentomojo raised ₹376.07 crore from anchor investors who included Goldman Sachs Funds – Goldman Sachs India Equity Portfolio, BlackRock Global Funds – India Fund, ICICI Prudential Quality Fund, HDFC Mutual Fund, Mirae Asset Great Consumer Fund, Motilal Oswal Large Cap Fund, and HDFC Standard Life Insurance Company Ltd, among others.
Karamtara
Karamtara Engineering’s ₹875-crore IPO received bids for 158.04 crore shares against 2.54 crore shares on offer, translating into a subscription of 62.63 times. The IPO comprised a fresh issue of ₹675 crore and an OFS of ₹200 crore hit the market with a price band of ₹241-254 a share.
Karamtara Engineering is a backward-integrated manufacturer engaged in the business of designing and producing structural products for the renewable energy and power transmission sectors.
QIBs made aggressive bidding with their reserved quota being subscribed at 159.59 times; the portion for retail investors and HNIs was subscribed 13.26 times and 48.55 times respectively. Karamtara plans to use ₹600 crore from the fresh issue proceeds to repay borrowings.
The Mumbai-based company had raised ₹262.50 crore from anchor investors including HDFC AMC, Motilal Oswal AMC, Nippon Life India, Mirae Asset and Trust MF.
LCC Projects
The Gujarat-based LCC Projects also saw aggressive bidding, receiving bids for 99.59 crore shares against the 2.09 crore scrips on offer (48.51 times). The ₹427-crore IPO of the EPC company came out with a price band of ₹139-146, comprising a fresh issue of ₹258 crore and OFS of ₹169.14 crore.
It raised ₹128.14 crore from anchor investors who included Astorne Capital, Edelweiss Life Insurance Company, Craft Emerging Market Fund, Sunrise Investment Trust, ASAS Global Fund, Necta Bloom VCC, RGSL Investment Fund, Rajasthan Global Securities and LRSD. The net proceeds from the fresh issue will be used for the purchase of equipment, repayment of certain outstanding borrowings and general corporate purposes.
Steamhouse India
The ₹414-crore IPO of industrial gas producer Steamhouse India also saw healthy subscription of 30.49 times. QIBs remained the top draw at 43.91 times subscription followed by HNIs (44.3 times) and retail (16.9 times).
The IPO, comprised a fresh issue of ₹353 crore and an OFS of ₹61 crore, came out with a price band of ₹77-₹81. The net proceeds from the fresh issue will be used for repayment of certain outstanding borrowings, funding capital expenditure needs for augmenting infrastructure developments and general corporate purposes. Earlier, Steamhouse had garnered ₹124.2 crore from six anchor investors, including companies backed by ace investors Madhusudan Kela and Sunil Singhania.
Arcil
The IPO of Arcil was subscribed 20.1 times, thanks to QIB (52.65 times), HNIs (15.69 times) and retail (3.39 times).
The company has fixed a price band of ₹132-139 a share for its ₹733-crore IPO, which is entirely an OFS. Arcil had garnered ₹220 crore from anchor investors ahead of as its three-day IPO who included Goldman Sachs India AMC, WhiteOak Capital, Bandhan MF, JM Financial MF, Groww MF, Tata MF, Aditya Birla Sun Life MF, Bajaj Life Insurance, Societe Generale, BofA Securities Europe SA and Integrated Core Strategies Asia
Manipal Payment
Manipal Payment and Identity Solutions’ IPO was subscribed 1.42 times, thanks mainly to retail investors whose portion received bids for 2.19 times. The respective quotas of QIBs and HNIs were just subscribed 1.26 times and 1.22 times.
The company has fixed a price band of ₹322-339 per share for its ₹805-crore IPO that comprised a fresh issue of ₹320 crore and an OFS of ₹485 crore.
Manipal Payment plans to use ₹238.4 crore for purchasing and installing new and second-hand equipment at its facilities in Manipal, Chennai, Navi Mumbai and the Chhattisgarh RTO and for general corporate purposes.
Ahead of the IPO, Manipal Payment had raised ₹362.25 crore from anchor investors including Motilal Oswal Mutual Fund, Abakkus Mutual Fund, ITI Mutual Fund, Baroda BNP Paribas Mutual Fund, Edelweiss Life Insurance Company, Sageone-Flagship Growth Fund, Sanshi Fund-I Investment Account and Alchemy Emerging Markets Fund.