Vadodara-based fruit drinks player Manpasand Beverages received a lukewarm response on the first day of its IPO. The company received bids for only 4.29 lakh shares against 75.86 lakh shares of offer, amounting to 6% subscription. Manpasand Beverages is offering shares in the price range of INR290 -320 apiece.
More importantly, almost all of the subscription came from retail investors as Qualified Institutional Buyers (QIBs) stayed away. Retail investors made bids for 4.26 lakh shares while Non Institutional Investors bid for 3,510 shares.
Manpasand Beverages Limited IPO Bidding (as on 24 June 2015)
|Sr.No.||Category||No. of shares offered||No. of shares bid for||No. of times of total|
|1||Qualified Institutional Buyers (QIBs)||4137931||0||0.00|
|2||Non Institutional Investors||2068966||3510||0.00|
|3||Retail Individual Investors (RIIs)||1379310||426375||0.31|
Earlier, the company roped in 11 anchor investors including Birla Sun Life Insurance, ICICI Prudential Life Insurance, BNP Paribas and Goldman Sachs India Fund, among others. Manpasand Beverages placed 56.25 lakh shares at a price of INR320 apiece to raise INR180 crore from anchor investors. Goldman Sachs India Fund and Birla Sun Life Insurance were the biggest buyers with 10.93 lakh and 5.75 lakh shares respectively.
Manpasand Beverages plans to use the funds to set a new manufacturing facility, to modernize its twin facilities in Vadodara and Varanasi, and to repay borrowings. The company counts SAIF Partners and Aditya Birla Private Equity among its investors. SAIF Partners holds nearly 29.79% stake in the company following its cumulative investment of INR90 crore in July 2011 and June 2014. Aditya Birla PE’s Sunrise Fund invested INR26.25 crore in the company in August 2014 for 3% stake. Company promoter Dhirendra Singh owns 67.18% stake.
Manpasand Beverages is largely known for its Mango Sip brand which is sold in 23 states across India through 54 consignee agents and 472 distributors. The company plans to expand its distribution reach to all 29 states and even plans to expand overseas by opening a facility in Dubai, although that is part of a long term plan. Currently, it operates three manufacturing facilities in Vadodara, Varanasi and Dehradun.
Established in fiscal 2010, the company has moved fast to achieve revenues of INR294.3 crore in fiscal 2014. Part of its success lies in the strategy to tap the under-penetrated rural markets and also, leverage the growing consumer preference for healthier beverages, especially in urban markets. The company’s net sales has shown a CAGR of 85.29% from fiscal 2012 to fiscal 2014, while EBITDA and profit after tax has shown a CAGR of 78.63% and 83.68% during the same period. In line with its growth strategy, the company plans to boost its annual revenues to INR1,000 crore by March 2016.