Syngene IPO fully subscribed on second day, 1.4X in retail portion

Syngene facilitySyngene International’s initial public offering (IPO) received full subscription on the second day of bidding. According to combined data available from NSE and BSE, the Bangalore-based subsidiary of Biocon attracted bids for 1,60,79,700 shares by 5 PM. A total of 1.6 crore shares are on offer by the company in the net offer (excluding the anchor investor portion). Last week, Syngene placed 60 lakh shares with anchor investors at the higher end of its price band. The Biocon subsidiary raised INR150 crore by placing the shares with anchor investors which will have a lock in period of 30 days from the date of allotment. Including the shares allotted to anchor investors, the company is offering total 2.2 crore shares through the IPO in the price band of INR240-250 per share.

Read Also: Syngene places 60 lakh shares with anchor investors

Retail investors emerged as front runners in lapping up the IPO. Against a total of 70 lakh shares reserved for the category, investors have already bid for 98.5 lakh shares, resulting in subscription of 1.4 times.  In the Qualified Institutional Buyers (QIBs) quota, investors have bid for 48.9 lakh shares against 40 lakh shares available. This resulted in the subscription of 1.22 times in the category.

However, non institutional investors (NII) continued to stay away from the IPO even on the second day. According to the data available with both leading stock exchanges, investors in the NII category have only bid for 16.2% of the 30 lakh shares available. Out of the 20 lakh shares reserved for existing Biocon investors, investors bid for 8.54 lakh shares on the second day.

Read Also: Should you invest in Syngene IPO? Analysts say yes


Syngene International IPO Bidding (as on 28 July 2015)

Sr.No. Category No. of shares offered No. of shares bid for No. of times of total
1 Qualified Institutional Buyers (QIBs) 4000000 4886100 1.22
2 Non Institutional Investors 3000000 486360 0.16
3 Retail Individual Investors (RIIs) 7000000 9853020 1.41
4 Biocon shareholders 2000000 854220 0.43
Total 16000000 16079700 1.00

The issue has been unanimously given positive reviews by analysts at brokerage houses such as Anand Rathi, Way2Wealth, ICICIdirect, and Reliance Securities. This is also in line with buoyant grey market premium across the country. Here are some critical details and brokerage views on the IPO.

Also read: Syngene’s INR550 crore IPO – What you need to know

IPO dates 27 July – 29 July
Price band INR240 – 250 per share
Total shares 2.2 crore shares (net offer of 2 crore shares excluding the reservation of 20 lakh shares for existing Biocon shareholders
Category allocation QIB – 50%, NII – 15%, Retail – 35%
Lead managers Axis Capital Limited, Credit Suisse Securities (India) Private Limited and Jefferies India Private Limited

Read Also: SEBI approves IPO plans of Numero Uno, Sadbhav Infrastructure

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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 .

2 thoughts on “Syngene IPO fully subscribed on second day, 1.4X in retail portion

  • July 29, 2015 at 12:58 PM

    Please advise on Grey Market premium

    • July 29, 2015 at 7:03 PM

      Premium was around 70 yesterday but expect it go up after the bumper subscription today


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