LIC IPO: Anchor investor portion oversubscribed
According to sources, on the first day itself, the bids from the anchor investors or large investors are twice the size of the anchor book.
Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional bidders.
Auto component maker Craftsman Automation on Friday raised a little over Rs 247 crore from anchor investors ahead of its initial share-sale, which will open for public subscription on Monday.
The company’s IPO committee in consultation with merchant bankers has decided to allocate a total of 16,58,447 shares at Rs 1,490 to 21 anchor investors, aggregating to Rs 247.10 crore, a BSE circular showed.
The anchor investors include HSBC Global Investment Funds, Tata Mutual Fund (MF), Aditya Birla Sunlife MF, The Nomura Trust and Banking Co Ltd, Max Life Insurance Co Ltd and Integrated Core Strategies Asia Pte Ltd.
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The initial public offer (IPO) comprises a fresh issue of equity shares aggregating up to Rs 150 crore and an offer for sale of up to 45,21,450 shares by the promoter and existing shareholders.
Those offloading shares in the offer-for-sale are Srinivasan Ravi, K Gomatheswaran, Marina III (Singapore) Pte Ltd and International Finance Corporation (IFC).
Currently, IFC and Marina hold 14.06 per cent and 15.50 per cent stake, respectively, in the company. Besides, Srinivasan Ravi owns a 52.83 per cent stake and K Gomatheswaran has a 7.04 per cent holding.
The IPO is expected to fetch Rs 824 crore at the upper end of the price band.
The company has fixed a price band of Rs 1,488-1,490 a share for its IPO, which will open for public subscription on March 15 and close on March 17.
Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and 15 per cent for non-institutional bidders.
Net proceeds of the issue will be utilised for repayment or pre-payment of certain borrowings availed of by the company and for general corporate purposes.
In addition, the company expects to receive the benefits of listing the equity shares on the stock exchanges.
Axis Capital and IIFL Securities have been appointed as book-running lead managers to the issue. Shares of the company are proposed to be listed on BSE and NSE.
Earlier, the auto component maker had filed draft papers with Sebi in June 2018 and had received the regulator’s clearance for launching the IPO.
However, the company couldn’t launch the initial share-sale due to unfavourable market condition, market experts said.
Headquartered in Coimbatore, the company has satellite units across India namely Pune, Faridabad, Pithampur, Jamshedpur, Bengaluru, Sriperumbudur and Chennai.
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