Three companies that are backed by private equity investors hit the market this week, with two launching their bids on Wednesday and one seeing a spectacular response from investors on the final day.
Indegene Ltd, backed by Carlyle and Nadathur Holdings, recorded subscription of 69.66 times the shares on offer. It received bids for more than 2 billion shares against the 28.8 million shares on offer. Nadathur is the family office of Infosys co-founder Nadathur S Raghavan. It holds a 23.6% stake in Indegene while Carlyle holds 20.4%.
Institutional investors bid for 197.55 times the portion reserved for them while non-institutional investors placed bids for 54.67 times their quota. The retail investors’ portion was covered 7.61 times.
Indegene’s Rs 1,841.76-crore public offering comprises a fresh issuance of shares worth Rs 760 crore and an offer for sale of 23.9 million shares worth Rs 1,081.76 crore at the upper price band of Rs 452.
Indegene, which provides digital services for the life sciences industry, garnered Rs 549 crore from anchor investors such as Abu Dhabi Investment Authority and a bunch of mutual funds ahead of the IPO.
Aadhar Housing
Blackstone-backed Aadhar Housing Finance’s Rs 3,000-crore IPO saw a lukewarm response on the first day, with total subscription of 43% of the issue size.
The institutional investors’ segment was covered only 33% while non-institutional investors bid for 60% of the portion set aside for them. Retail investors subscribed for 41% of their quota.
The IPO comprises a Rs 1,000-crore fresh share issuance and a Rs 2,000-crore offer for sale by the PE firm.
Aadhaar Housing plans to use the capital to fulfill its capital requirements, besides general corporate purposes.
In the run-up to the IPO, the company raised Rs 897.9 crore from anchor investors. Morgan Stanley, WF Asian Reconnaissance Fund, Clarus Capital, CLSA Global, and East Bridge Capital were among those who participated.
Blackstone owns more than 98% of Aadhaar Housing Finance.
TBO Tek
Another company that launched its IPO on Wednesday was TBO Tek Ltd. Its IPO was fully subscribed.
It saw an overall subscription of 1.17 times, with the retail category seeing a subscription of 3.23 times and non-institutional investor category being covered 2.09 times. However, institutional investors largely stayed away.
The company is backed by PE firms General Atlantic and Affirma Capital.
The IPO comprises a fresh issue of shares to raise Rs 400 crore and an offer of sale of 12.51 million shares by its promoters as well as Affirma. The PE firm is selling about 7.3 million shares, after it tweaked its exit plan. It currently holds 31.9 million shares, or a 30.59% stake, in TBO Tek.