Adani Wilmar IPO - Subscription Day 1

Adani Wilmar IPO - Subscription Day 1

IPO
by 5paisa Research Team Last Updated: Jan 27, 2022, 06:29 PM IST

The Rs.3,600 crore IPO of Adani Wilmar Ltd, consisting entirely of a fresh issue of shares of Rs.3,600 crore, saw stable response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, Adani Wilmar IPO was subscribed 0.57X overall, with strong demand coming from the retail segment followed by the HNI segment and the QIB segment in that order at the close of the first day of subscription. The issue will close for subscription on Monday, 31st January 2022.

As of close of 27th January 2022, out of the 1,225.46 lakh shares on offer in the IPO, Adani Wilmar Ltd saw bids for 704.43 lakh shares. This implies an overall subscription of 0.57X. The granular break-up of subscriptions was dominated by the retail investors followed by the HNI segment and the QIBs in that order.

Normally, it is only on the last day of bidding, the NII bids and the QIB bids build up substantial momentum. First day response may not be too suggestive in this case, since the anchor allocation has been quite strong. 
 

Adani Wilmar IPO Subscription Day 1
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.30 Times

Non Institutional Investors (NII)

0.54 Times

Retail Individuals

0.96 Times

Employee Reservation

0.05 Times

Parent Shareholder Reservation

0.10 Times

Overall

0.57 times

 

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 25th January, Adani Wilmar Ltd did an anchor placement of 4,08,65,217 shares at the upper end of the price band of Rs.230 to a total of 15 anchor investors raising Rs.940 crore, representing 26.11% of the total issue size. Government of Singapore and Monetary Authority of Singapore took on the bulk of the anchor allocation in their books.

The other list of QIB anchors included a number of marquee international names like Winro Dovetail, Jupiter Fund, Societe Generale, Volrado Ventures etc. Domestic investors in the anchor placement included HDFC Mutual Fund and Nippon India Fund.

The QIB portion (net of anchor allocation as explained above) has a quota of 287.43 lakh shares of which it has got bids for 84.84 lakh shares at the close of Day-1, implying 0.30 times subscription for QIBs at the close of Day-1. However, QIB bids typically get bunched on the last day but the solid response in the anchor placement shows that there is institutional appetite for the IPO.

HNI / NII Portion

The HNI portion got subscribed 0.54 times (getting applications for 116.01 lakh shares against the quota of 215.57 lakh shares). This is a relatively good response at the close of Day-1 because most of the response has come from individual HNIs. However, this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a healthier 0.96 times at the close of Day-1, showing strong retail appetite; as has been the general trend with IPOs in the recent past. It must be noted that retail allocation is 35% in this IPO.

Retail portion was subscribed 0.96 times. For retail investors; out of the 503.01 lakh shares on offer, valid bids were received for 484.62 lakh shares, which included bids for 378.23 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.218-Rs.230) and will close for subscription on 31st January 2022.

Also Read:-

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Upcoming IPOs in January 2022

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