Pennar Engineered Building Systems and Shree Pushkar IPOs sail through

The twin IPOs of Pennar Engineered Building Systems and Shree Pushkar Chemicals & Fertilisers sailed through with full subscription on the last day of bidding. Pennar Engineered Building Systems, which aimed to raise more than INR150 crore through the IPO, received a total subscription of 1.1 times. As on 6 PM, investors placed bids for 72.39 lakh shares, according to combined data from NSE and BSE. Excluding the 26.32 lakh shares placed with anchor investors earlier this week, 62.95 lakh shares were available for subscription in the net offer.

Read Also: Pennar Engineered Building Systems ropes in anchor investors

Maximum subscription was witnessed in the Qualified Institutional Buyer (QIB) category where investors placed bids for 40.38 lakh shares against 18.31 lakh shares available on offer. Non Institutional Investor (NII) – also called High Networth Individual (HNI) – category also received full subscription. Subscription in HNI category was 1.44 times with total bids for 19.28 lakh shares. However, retail investors placed bids for only 12.78 lakh shares, against 31.24 lakh shares on offer. This resulted in subscription of only 41%.

Pennar Engineered Building Systems IPO Bidding (as on 27 August 2015, as on 6:00 PM)

Sr.No.CategoryNo. of shares offeredNo. of shares bid forNo. of times subscription
1Qualified Institutional Buyers (QIBs)183158340383202.20
2Non Institutional Investors133918619280001.44
3Retail Individual Investors (RIIs)312476712780800.41
Total629553672444001.15

Out of the INR58 crore the company will receive from the IPO, INR34 crore will be used to lower interest costs by paying back loans. This would substantially reduce its working capital loans which stood at INR46.6 crore as on 12 August 2015. Another INR8 crore will be used to purchase software and hardware while the remaining funds will be used towards general corporate purposes.

Small is beautiful – Shree Pushkar Chemicals & Fertilisers

On the other hand, the small IPO of Shree Pushkar Chemicals & Fertilisers fared slightly better with a total subscription of 1.33 times. The IPO has mobilized INR70 crore through a combination of fresh equity and offer for sale, priced between INR61-65 per share.

Read Also: IPO Review: Shree Pushkar Chemicals & Fertilisers’ IPO opens on 25 August

According to combined data available with NSE and BSE till 6:00 PM, investors had placed bids for a total of 1.52 crore shares against the 1.14 crore shares available for subscription. QIB category had a shortfall of 3% but subscription was strong in NII category at 2.09 times. Retail investors also flocked to the IPO and bid for 60.5 lakh shares, resulting in subscription of 1.51 times.

Shree Pushkar Chemicals & Fertilisers IPO Bidding (as on 27 August 2015, as on 6:00 PM)

Sr.No.CategoryNo. of shares offeredNo. of shares bid forNo. of times subscription
1Qualified Institutional Buyers (QIBs)573770555766000.97
2Non Institutional Investors172131135994002.09
3Retail Individual Investors (RIIs)401639460528001.51
Total11475410152288001.33

Shree Pushkar Chemicals & Fertilisers plans to use the funds for acquisition of a factory and setting up production and effluent treatment plants. The biggest chunk of IPO proceeds will be used towards setting up a new facility for production of reactive dyes, H-Acid, and Vinyl Sulphone. The company plans to invest INR41.6 crore in this regard while INR4.9 crore will be used towards establishing an effluent treatment plant at its existing facility.

Krishna Bagra

Coming from a family of investors and financial analysts, Krishna learnt wading through regulatory filings pretty early in her career. At IPO Central, Krishna plays twin roles of contributor and head of research desk. She can also be reached at +krishnabagra .

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