The initial public offering of Shyam Metalics and Energy garnered 121 times subscription on Wednesday, the final day of the bidding. It generated bids of over Rs 78,000 crore.
The qualified institutional buyer (QIB) portion of the issue was subscribed 153 times, the high net-worth individual portion was subscribed 340 times and the retail portion was bought nearly 12 times. Shyam Metalics’ IPO size was Rs 909 crore — of which Rs 657 crore was fresh fundraise to help retire debt. The IPO price band was Rs 303-306 per share. At the top end, the Kolkata-based firm will have a market capitalisation of Rs 7,805 crore on a post-diluted basis.
Market players said the attractive grey market premium and bullish sentiment towards metal stocks led to a huge demand for the IPO. Most brokerages had recommended the IPO. “Considering the trailing 12-month (Dec 20) adjusted earnings per share of Rs 21.02 on a post-issue basis, the company is going to list at a P/E of 14.6 times, whereas its peers, namely Tata Steel and JSW Steel, are quoting at higher P/E of 16.6 times and 21.6 times, respectively,” said a note by Marwadi Financial Services.
HNIs give Sona offering a miss
Another IPO that closed on Wednesday was of Sona BLW Precision Forgings (Sona Comstar). It received a relatively lukewarm response with just 2.3 times subscription. The QIB portion of this issue was subscribed 3.54 times and the retail portion 1.6 times. The HNI portion was bought just 0.40 times. Through the IPO, the auto component maker raised Rs 5,250 crore in fresh capital. The issue also comprised secondary share sale worth Rs 300 crore.
Mixed Day 1 for Dodla & KIMS
The IPOs of Dodla Dairy and Krishna Institute of Medical Sciences (KIMS) garnered 1.4 times and 0.27 times subscription, respectively, on the first day of the issue. Both IPOs close on Friday. Dodla Dairy has fixed a price band of Rs 421-428 per share. At the top end, the company will be valued at Rs 2,546 crore.
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