Bidding for the initial public offering (IPO) of four companies -- Tata Technologies, Flair Writing Industries, Fedbank Financial Services and Gandhar Oil Refinery -- entered Day 2 on November 23, 2023. The bidding process for the public issue of state-owned company IREDA (Indian Renewable Energy Development Agency) entered the final day today. Collectively, these five main board IPOs are eyeing to raise around ₹7,300 crore, which is going to be one of the highest amounts of funds raised in a week this calendar year so far.
Here are the details of the bidding status of the IPOs of all these companies:
Investors seem bullish on Tata Technologies’ IPO, with the public issue being subscribed 13.29 times on Day 2 of the launch. It is the first public offering by a Tata Group company in 18 years. The company has received 59,83,43,520 bids for 4,50,29,207 shares on offer, with the quota for non-institutional investors getting subscribed the maximum 27.39 times. All other categories have received an overwhelming response. The quota for retail investors received 19,26,19,380 bids for 1,84,57,919 shares on offer, thus getting subscribed 10.44 times. The quota for qualified institutional buyers (QIBs), employees, and shareholders was subscribed 6.90 times, 2.16 times, and 18.39 times, respectively. The global engineering services company has set the price band of its IPO at ₹475-500 per share, aiming to raise ₹3,042 crore at the upper end of the price band.
The IPO of Fedbank Financial Services, which opened on Wednesday, has been subscribed 0.78 times, with 4,35,40,654 bids placed for 5,59,23,660 shares on offer. The IPO comprises a fresh issue of equity shares aggregating up to ₹600 crore and OFS of up to 35,161,723 equity shares by selling shareholders at a price band of ₹160-₹169 apiece. The quotas for QIB, NII and retail investors have been subscribed 0.56, 0.37 and 1.08, respectively. The employee category has received 5,70,310 bids for 8,13,008 share son offer, thus subscribing 0.70 times.
The company proposes to use the net proceeds from the fresh issue towards augmenting its tier-1 capital base to meet future capital requirements, arising out of the growth of its business and assets. A portion will be used towards meeting offer expenses.
Gandhar Oil Refinery
The Gandhar Oil Refinery IPO has been booked 13.53 times on Day 2, with non-institutional investors pouring maximum bids at 10,15,28,680 of a total of 45,94,787 on offer, thus subscribing 22.10 times. The quotas for QIBs and retail investors have been subscribed 3.05 and 15.66 times, respectively. The company is looking to raise ₹500.69 crore at a price band of ₹160-169 apiece. Bids can be made for a minimum of 14,872 equity shares and in multiples of 88 shares thereafter. The IPO comprises fresh equity shares worth ₹302 crore and OFS of up to 1,17,56,910 equity shares by promoters and existing shareholders.
Flair Writing Industries
The public issue of pen maker Flair Writing Industries has also received a good response from investors as the issue has been subscribed 5.10 times. The company looks to raise ₹593 crore via the IPO route, which comprises fresh equity shares of ₹365 crore and OFS of ₹380 crore by existing shareholders. Flair Writing, which owns the over 45-year-old flagship brand 'Flair', has set a price band of ₹288-304 per share and the minimum order quantity is 49 shares.
The NSE's consolidated data shows bids have been placed for 7,35,42,483 shares against 1,44,13,188 shares on offer. The non-institutional investors’ category has been subscribed maximum as investors place 2,38,36,344 bids for 30,88,541 shares on offer, thus subscribing 7.72 times. The quota for retail individual investors and qualified institutional buyers has been subscribed 6.14 and 1.33 times, respectively.
Indian Renewable Energy Development Agency (IREDA)
The public issue of the state-owned Indian Renewable Energy Development Agency Ltd, which entered the final day of bidding today, has also received an overwhelming response from investors, with the entire issuing getting subscribed 37.76 times. State-owned company IREDA plans to raise ₹2,150.21 crore through a combination of a fresh issue of 40.31 crore shares and an OFS of 26.87 crore shares by existing shareholders. The qualified institutional buyers (QIBs) have placed a record 13,64,96,57,740 bids for just 13,40,13,152 shares on offer, thus oversubscribing 101.85 times. The quotas for other categories, including NIIs, retail investors and employees, have been subscribed 23.91, 7.31 and 9.11 times, respectively. The price band has been fixed at ₹133-140 per share for the IPO, and investors can bid for a minimum of 460 equity shares and in multiples of 460 equity shares thereafter.
