Vedant Fashions IPO - Subscription Day 1
The Rs.3,149.19 crore IPO of Vedant Fashions Ltd, consisting entirely of an offer for sale of shares of Rs.3,149.19 crore, saw weak response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, Vedant Fashions Ltd IPO was subscribed just 0.14 time overall, with very tepid demand coming from the retail, HNI / NII and the QIB categories in the issue. The issue will close for subscription on Tuesday, 08th February 2022.
As of close of 04th February 2022, out of the 254.55 lakh shares on offer in the IPO, Vedant Fashions Ltd saw bids for just 35.33 lakh shares. This implies an overall subscription of 0.14 times. The granular break-up of subscriptions was tepid across categories with the retail investors doing just about slightly better than the NIIs and the QIBs on the close of the first day of subscription.
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.
Vedant Fashions IPO Subscription Day 1
|
Category |
Subscription Status |
|
Qualified Institutional Buyers (QIB) |
0.06 Times |
|
Non Institutional Investors (NII) |
0.06 Times |
|
Retail Individuals |
0.22 Times |
|
Employee Reservation |
N.A. |
|
Shareholder Reservation |
N.A. |
|
Overall |
0.14 times |
QIB Portion
Let us first talk about the pre-IPO anchor placement. On 03rd February, Vedant Fashions IPO did an anchor placement of 1,09,09,450 shares at the upper end of the price band of Rs.866 to a total of 75 anchor investors. Vedant raised Rs.944.76 crore via anchor issue representing 30% of the total issue size. Out of the 75 anchor investors, 44 were domestic mutual fund schemes while the others were FPIs and institutional investors.
Check - Vedant Fashions IPO - Anchor Investments
The anchor list of QIB anchors included a number of marquee international names like Government of Singapore, MAS, Fidelity, Nomura, Volrado Fund, Morgan Stanley, Abu Dhabi Investment Authority, Wellington, Ashoka Fund, Pioneer Fund, Carmignac etc. It also included big domestic names like SBI MF, ICICI Pru, Axis MF, HDFC Life etc.
The QIB portion (net of anchor allocation as explained above) has a quota of 72.73 lakh shares of which it has got bids for 4.31 lakh shares at the close of Day-1, implying 0.06 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 0.06 times (getting applications for 3.31 lakh shares against the quota of 54.55 lakh shares). This is a very tepid response at the close of Day-1 with most of the response coming only 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 relatively better at 0.22 times at the close of Day-1, but still too tepid by normal retail standards. This is contrary to the general trend with IPOs in the recent past, although the high price may have been a deterrent for retail. It must be noted that retail allocation is 35% in this IPO. Retail portion was subscribed 0.22 times.
For retail investors; out of the 127.28 lakh shares on offer, valid bids were received for 27.70 lakh shares, which included bids for 20.81 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.824-Rs.866) and will close for subscription on 08th February 2022.
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