Speciality chemicals maker Galaxy Surfactants Ltd’s initial public offering continued to attract strong interest on its third and final day, with the IPO getting subscribed 20 times on Wednesday.
The public issue of 4.43 million shares, excluding the anchor investors’ portion, received 87.79 million bids, stock exchange data showed.
Institutional buyers bid for 54.3 times their quota of 1.26 million shares. The retail portion, in which bids cannot exceed Rs 2 lakh, was subscribed roughly two times the 5.6 million shares on offer. Bidding for retail investors will remain open till late evening.
The portion for non-institutional investors, comprising corporate bodies and high net-worth individuals (HNIs), was subscribed nearly seven times.
Galaxy Surfactants' IPO was almost fully subscribed on its first day, that is Monday.
The IPO picked up paceon the second day on Tuesday, getting subscribed 4.13 times.
Ahead of the offering, the Navi Mumbai-headquartered company sold 1.9 million shares to anchor investors at the upper end of the Rs 1,470-1,480 price band. The IPO size works out to Rs 937 crore ($147 million) at the upper end of the band.
Sovereign wealth funds Abu Dhabi Investment Authority and Kuwait Investment Authority bought 100,000 shares each as anchor investors. Most other anchor investors were domestic and foreign mutual funds and insurance companies.
Last November, Galaxy had refiled its draft red herring prospectus (DRHP) for an IPO. It received the Securities and Exchange Board of India’s (SEBI’s) approval for the IPO on January 12.
Galaxy was the second company to receive regulatory clearance for an IPO in 2018 after restaurant chain Barbeque Nation. As many as 46 firms had received clearances for IPOs in 2017, according to SEBI's website.
Galaxy's previous attempt to go public in May 2011 had failed. Then, Galaxy had aimed to raise up to Rs 201 crore. However, it withdrew the IPO a day before closing as the issue was subscribed only 30%.
Now, Galaxy’s renewed IPO comprises entirely of 6.33 million shares on offer by promoters and individuals. In all, 307 individuals will sell shares through the IPO. The company will not receive any proceeds from the offering.
Galaxy is seeking a valuation of Rs 5,247.30 crore ($823 million) through the IPO. Promoter stake will decline to 70.91% after the IPO from the present 76.98%, VCCircle estimates show.
ICICI Securities, Edelweiss Financial Services and JM Financial Institutional Securities are the merchant bankers managing the IPO.
Galaxy’s peer Fine Organic Industries Pvt. Ltd is also preparing to go public.
Galaxy Surfactants
Galaxy, which was incorporated in May 1986, makes surfactants and other speciality ingredients for personal care and home care industries. Its products are used in consumer-centric personal care and home care products, including, skin care, oral care, hair care, cosmetics, toiletries and detergent products.
The company claims to have significantly expanded and diversified its product profile since its inception 31 years ago. It caters to multinational, regional and local players operating in home and personal care industries.
Its product portfolio, divided into performance surfactants and speciality care products, comprises over 200 product grades marketed to over 1,700 customers across 70 countries.
Galaxy counts Cavinkare, Colgate-Palmolive (India), Dabur India, Henkel, Himalaya, L’Oréal, Procter and Gamble Home Products, RB (formerly Reckitt Benckiser), and Unilever, among its key clients.
Since 2002, the company has received 47 patents, including 10 in the US, and two each from China, European Union, Japan, Russia and India.
The company owns and operates seven manufacturing facilities, of which two are located outside India. Besides, it had recently set up a pilot plant at Tarapur, Maharashtra, to scale up production.
