As expected, Syngene International’s initial public offering (IPO) received a massive subscription of 32 times on the final day of bidding. Combined data available from NSE and BSE at 9 PM reveals that investors placed bids for 51.27 crore shares against 1.6 crore shares on offer. The Bangalore-based subsidiary of Biocon had placed 60 lakh shares with anchor investors last week at the higher end of its price band. Syngene 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. Important among the anchor investors are Government of Singapore and Monetary Authority of Singapore which are alloted allotted 6.59 lakh and 3.4 lakh shares respectively. In total, the company is offering total 2.2 crore shares through the IPO in the price band of INR240-250 per share.
Beating the slow progress of the last two days, non Institutional Investors (NIIs) emerged as most aggressive category with a subscription of 90.24 times. The category – also known as High Net-worth Individuals (HNI) category – received bids for 27.07 crores. Qualified Institutional Buyer (QIB) quota was subscribed 51.47 times as investors bid for 20.58 crore shares against 40 lakh shares available. Retail investors also showed eagerness and bid for 3.34 crore shares, resulting in an oversubscription of 3.78 times. A total of 70 lakh shares are reserved for investors with application amount of less than INR2 lakh.
In an IPO, last day usually attracts the highest number of applications and it was no different for Syngene. The IPO was completely booked on the second day on bidding. There is expected to be a gap of 12 days before the shares are publicly traded on the exchanges.
Syngene International IPO Bidding (as on 29 July 2015, 9PM)
|Sr.No.||Category||No. of shares offered||No. of shares bid for||No. of times of total|
|1||Qualified Institutional Buyers (QIBs)||4000000||205860420||51.47|
|2||Non Institutional Investors||3000000||270723720||90.24|
|3||Retail Individual Investors (RIIs)||7000000||33459900||4.78|
Street expectations are running high with the issue which has attracted favourable recommendations from brokerages such as Anand Rathi, Way2Wealth, ICICIdirect, and Reliance Securities. Private equity investor IVF (India Value Fund) Trustee Company – which is a shareholder in Syngene – is not selling its shares. IVF bought 10% stake in Syngene in January this year at the effective rate of INR190 per share.