The initial public offering (IPO) of Syngene International was subscribed 36.1% today on the first day of bidding. According to combined data available from NSE and BSE, the Bangalore-based subsidiary of Biocon attracted bids for 57.8 lakh shares. 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. In total, the company is offering total 2.2 crore shares through the IPO in the price band of INR240-250 per share.
Maximum subscription was seen in the Qualified Institutional Buyers (QIBs) quota where investors bid for 20 lakh shares against 40 lakh shares available. This resulted in the subscription of 50% in the category. Retail investors also showed eagerness and bid for 33 lakh shares, resulting in 47% subscription. A total of 70 lakh shares are reserved for investors with application amount of less than INR2 lakh.
[Tweet “Retail investors also showed eagerness and bid for 33 lakh shares, resulting in 47% subscription. “]
However, non institutional investors largely stayed away from the IPO, as indicated by the subscription of 0.04 times. This is perplexing as the issue has largely attracted positive reviews by most brokerage houses. Out of the 20 lakh shares reserved for existing Biocon investors, investors bid for 4 lakh shares on the first day.
Syngene International IPO Bidding (as on 27 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||1999980||50.0|
|2||Non Institutional Investors||3000000||112380||3.7|
|3||Retail Individual Investors (RIIs)||7000000||3287640||47.0|
The views expressed by brokerages such as Anand Rathi, Way2Wealth, ICICIdirect, and Reliance Securities are in line with buoyant grey market premium across the country. Here are some critical details and brokerage views on the IPO.
|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|