The initial public offering of logistics company Future Supply Chain Solutions Ltd neared the one-third mark on the first day of the issue on Wednesday while the share sale of hospital chain Shalby Ltd inched closer to the half-way stage on its second day.
Future Supply’s offering of 6.84 million shares, excluding the anchor allotment, was covered 31% after receiving bids for 2.16 million shares, stock-exchange data showed.
Qualified institutional buyers bid for half the 1.95 million shares reserved for them. The retail portion was covered 26.5%. The portion set aside for non-institutional investors, comprising corporate bodies and wealthy individuals, was covered nearly 20%. High net-worth individuals (HNIs) typically bid on the final day of an IPO to keep their financing costs at a bare minimum.
On Tuesday, the logistics arm of the Kishore Biyani-led Future Group had raised Rs 195 crore ($30 million) by selling about 2.94 million shares to 13 anchor investors at the upper end of the Rs 660-664 price band. The investors mostly included domestic mutual funds.
The IPO, which closes on Friday, comprises entirely a sale of 9.78 million shares by promoter entity Future Enterprises and Singapore-based distressed assets fund manager SSG Capital. The IPO will result in a 24.42% stake dilution on a post-issue basis. The promoter’s stake will drop to 52.47% after the IPO from 57.35% while SSG’s stake will fall to 14.63% from 34.18%.
At the upper end of the band, the selling shareholders will raise Rs 649.69 crore ($100.72 million) at a valuation of Rs 2,660 crore ($412 million).
SSG had sold a 5% stake as part of a pre-IPO round last month, marking the first such liquidity event in its India portfolio. The Singapore firm had acquired a 40% stake in Future Supply in April 2016 at a valuation of Rs 1,450 crore.
Future Supply had filed a draft prospectus for the IPO on 23 August. It received the Securities and Exchange Board of India’s approval on 26 October.
Future Supply Chain will become the group’s sixth firm to list on the exchanges. Other listed firms are Future Retail, Future Consumer, Future Market Networks, Future Enterprises and Future Lifestyle Fashions.
Edelweiss, CITIC CLSA and Nomura are the global coordinators and book running lead managers for the IPO. IDFC, IIFL and Yes Securities are the other merchant bankers involved.
Shalby IPO
Meanwhile, the IPO of Ahmedabad-based Shalby, which runs a chain of multi-specialty hospitals under the brand Shalby Hospitals, was covered 45% on the second day of the issue on Wednesday.
The issue received bids for 6.64 million shares against the 14.52 million shares on offer, excluding the anchor portion, stock-exchange data showed.
The quota of shares reserved for qualified institutional buyers was subscribed 34% of the 4.15 million shares on offer. The retail portion was covered 71% and the portion set aside for non-institutional investors only 1.6%.
On Monday, the hospital chain raised Rs 150.53 crore from a bunch of anchor investors including private equity firm Indgrowth Capital and investment bank Goldman Sachs by selling 6.07 million shares to 13 anchor investors at the upper end of the Rs 245-248 price band.
The company is looking to raise Rs 504.8 crore ($78.26 million) from the IPO at a valuation of Rs 2,678.64 crore. The issue comprises a fresh issue of shares worth Rs 480 crore, besides a secondary sale of shares worth Rs 24.8 crore by promoter Vikram I Shah.
The IPO will see an 18.84% stake dilution on a post-issue basis. Based on the upper end of the price band, promoters’ holding will fall to 79.4% after the IPO from 97.86%. The promoters will get three years from the date of listing to meet the regulatory guideline of minimum 25% public float for listed firms.
VCCircle had first reported in September last year that Shalby was eyeing an IPO and was in the process of hiring merchant bankers.
The firm had earlier explored raising capital via private equity funds, but then decided to list as it would allow it to raise more money.
Edelweiss Financial Services, IDFC Bank and IIFL Holdings are the merchant bankers managing Shalby’s IPO.