Ruchi Soya FPO - Subscription Day 3

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IPO
by 5paisa Research Team Last Updated: 2022-03-28T18:10:38+05:30

The Rs.4,300 crore FPO of Ruchi Soya Ltd, consisting entirely of a fresh issue of shares worth of Rs.4,300 crore, saw tepid response on Day-1 and Day-2 of the FPO. As per the combined bid details put out by the BSE at the end of Day-3, Ruchi Soya FPO was subscribed 3.60 times overall, with some demand pick-up seen in the HNI and to a lesser extend in the QIB segment.

However, the retail segment was subscribed only to the extent of 90%. Interestingly, the employee quota was oversubscribed 7.76 times, although the quota is quite small at just about 10,000 shares. The follow-on public offer (FPO) has closed for subscription on Monday,  28th March 2022.

As of close of 28th March 2022, out of the 489.46 lakh shares on offer in the FPO, Ruchi Soya Ltd saw bids for 1,760.69 lakh shares. This implies an overall subscription of 3.60 times. The granular break-up of subscriptions was dominated by HNI/NII investors followed by the QIB investors with tepid demand from retail.

Normally, it is only on the last day of bidding, the NII/HNI bids and the QIB bids build up substantial momentum. That is exactly what we once again got to see in the Ruchi Soya FPO.


Ruchi Soya FPO Subscription Day 3
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

2.20 Times

Non Institutional Investors (NII)

11.75 Times

Retail Individuals

0.90 Times

Employees

7.76 Times

Overall

3.60 times

 

QIB Portion

Let us first talk about the pre-FPO anchor placement. On 23rd March, Ruchi Soya Ltd did an anchor placement of 1,98,43,153 shares at the upper end of the price band of Rs.650 to a total of 46 anchor investors raising Rs.1,290 crore, representing 30% of the total issue size. 

The list of QIB anchors included a number of marquee international names like YAS TAKAUL, SBI Life, Authum Investments, Winro Commercial, AG Dynamics Fund, Societe Generale, Volrado Fund, Quant Fund, Kotak MF, Birla MF, Belgrave Investments, Cohesion MK Best Ideas, Alchemy, ASK India, HDFC Life Insurance and the Oman Sovereign Fund.
 

Check - Ruchi Soya FPO - Subscription Day 2


The QIB portion (net of anchor allocation as explained above) has a quota of 139.82 lakh shares of which it has got bids for 308.28 lakh shares at the close of Day-3, implying 2.20 times subscription for QIBs at the close of Day-3. QIB bids were bunched on the last day of the issue but the strong response in the anchor placement had indicated that there was healthy and substantial institutional appetite for the FPO.

HNI / NII Portion

The HNI portion got subscribed 11.75 times (getting applications for 1,232.05 lakh shares against the quota of 104.86 lakh shares). This is a relatively good build-up in terms of last day accretion at the close of Day-3 with most of the response coming from HNI individuals.

However, this segment normally sees the maximum response bunched on the last day and so the trend we have seen is fairly normal. Bulk of the funded applications and corporate applications, come in on the last day of the FPO only.

Retail Individuals

The retail portion was subscribed just 0.90X or 90% at the close of Day-3. Retail interest is normally seen in the first 2 days, and the tepid start to the FPO had indicated that the retail segment may underperform. It is an indication of the wariness of retail investors in the current market conditions. It must be noted that retail allocation is 35% in this FPO.

For retail investors; out of the 244.68 lakh shares on offer, valid bids were received for 219.58 lakh shares, which included bids for 178.93 lakh shares at the cut-off price. The FPO was priced in the band of (Rs.615-Rs.650) and has closed for subscription on 28th March 2022.

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