Supriya Lifesciences IPO - Subscription Day 1

Supriya Lifesciences IPO - Subscription Day 1

IPO
by 5paisa Research Team Last Updated: 2021-12-16T20:16:00+05:30

The Rs.700 crore IPO of Supriya Lifesciences, consisting of a fresh issue of Rs.200 crore and an offer for sale (OFS) of Rs.500 crore, saw decent response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, Supriya Lifesciences IPO was subscribed 2.33 times overall, with demand coming mainly from the retail segment but marginal demand from the HNI segment. The issue will close for subscription on Monday, 20th December.

As of close of 16th December, out of the 145.28 lakh shares on offer in the Supriya Lifesciences IPO saw bids for 338.76 lakh shares. This implies an overall subscription of 2.33 times. The granular break-up of subscriptions was dominated by the retail investors with limited response from HNIs and NIL response from the QIBs.

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 relevant for Supriya Lifesciences.
 

Supriya Lifesciences IPO Subscription Day 1
 

Category

Subscription Status

Qualified Institutional Buyers (QIB)

0.00 Times

Non Institutional Investors (NII)

0.66 Times

Retail Individuals

11.84 Times

Employees

N.A.

Overall

2.33 times

 

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 15th December, Supriya Lifesciences did an anchor placement of 1,14,96,351 shares at the upper end of the price band of Rs.274 to 18 anchor investors raising Rs.315 crore, representing 45% of the overall issue size. 

The list of QIB anchors included some global names like Dovetail India Fund, Cohesion MK, Malabar India Fund, Kuber India Fund, Volrado Partners, BNP Paribas, Societe Generale etc. Domestic investors in the anchor placement included Nippon India MF, Aditya Birla Sun Life MF, Reliance General Insurance, Rajasthan Global Securities etc. Anchor investors have a mandatory lock in period of just 1 month.

The QIB portion (net of anchor allocation as explained above) has a quota of 79.25 lakh shares of which it has got bids for Nil shares at the close of Day-1, implying Nil subscription for QIBs at the end of Day-1. However, QIB bids typically get bunched on the last day but the institutional interest in the anchor placement shows there is institutional appetite.

HNI / NII Portion

The HNI portion got subscribed 0.66x to 66% (getting applications for 26.08 lakh shares against the quota of 39.62 lakh shares). This is OK for Day-1 because this segment normally sees the maximum response bunched on the last day of the issue. 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 relatively robust 11.84 times at the close of Day-1, showing strong retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is just 10% in this IPO.

For retail investors; out of the 26.42 lakh shares on offer, valid bids were received for 312.68 lakh shares, which included bids for 248.36 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.265-Rs.274) and will close for subscription on 20th December 2021.

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