Adani Wilmar IPO - Subscription Day 3

Adani Wilmar IPO - Subscription Day 3

IPO
by 5paisa Research Team Last Updated: 2022-01-31T19:02:57+05:30

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 and Day-2 of the IPO. As per the combined bid details put out by the BSE at the end of Day-3, Adani Wilmar IPO was subscribed 17.37X overall, with strong demand coming from the HNI segment followed by the QIB segment and the retail segment in that order at the close of the third day of subscription. The issue has closed for subscription on Monday, 31st January 2022.

As of close of 31st January 2022, out of the 1,225.46 lakh shares on offer in the IPO, Adani Wilmar Ltd saw bids for 21,287.81 lakh shares. This implies an overall subscription of 17.37X. The granular break-up of subscriptions was dominated by the HNI segment followed by the QIBIs and the retail investor segment in that order.

Normally, it is only on the last day of bidding, the NII bids and the QIB bids build up substantial momentum and that is what we got to see in the Adani Wilmar issue too. First couple of days response is normally not too suggestive in this case.


Adani Wilmar IPO Subscription Day 3

 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

5.73 Times

Non Institutional Investors (NII)

56.30 Times

Retail Individuals

3.92 Times

Employee Reservation

0.51 Times

Parent Shareholder Reservation

33.33 Times

Overall

17.37 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 1,646.74 lakh shares at the close of Day-3, implying 5.73X subscription for QIBs at the close of Day-3. QIB bids typically get bunched on the last day but the solid response in the anchor placement had already indicated that there was strong institutional appetite for the IPO.

HNI / NII Portion

The HNI portion got subscribed 56.30X (getting applications for 12,137.05 lakh shares against the quota of 215.57 lakh shares). This is a very strong response at the close of Day-3 because most of the response has come from individual HNIs, followed by corporates. This segment normally sees the maximum response bunched on the last day, which was the case in the Adani Wilmar IPO too. Bulk of the funded applications and corporate applications, came in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a healthy 3.92X at the close of Day-3, showing strong retail appetite; as has been the general trend with most IPOs in the recent past. It must be noted that retail allocation is 35% in this IPO. Retail portion was subscribed 3.92X.

For retail investors; out of the 503.01 lakh shares on offer, valid bids were received for 1,971.70 lakh shares, which included bids for 1,508.78 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.218-Rs.230) and has closed for subscription on 31st January 2022.

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