The initial share sale offering by the country's largest microfinance entity SKS Microfinance got a robust response from investors, including retail buyers, and was oversubscribed 13.69 times at the end of the issue today.
Investors from all categories-- retail, institutional, and corporates-- lapped up the issue, generating demands for up to Rs 18,502.83 lakh crore. The offer got total bids for over 18 crore shares against 1.37 crore equities on offer, as per the latest NSE data.
"Huge participation by retail investors in the SKS issue and the FPO of state-run Engineers India shows that confidence is now resuming for the primary markets," said SMC Captials equity head Jagannadham Thunuguntla told PTI.
EIL issue had also generated a huge demand and was oversubscribed over 13 times.
In the portion reserved for QIBs, the SKS issue was subscribed 20.38 times, as per the NSE data. In the HNI category, it got demand for 18.26 times, while for retail portion saw response for 2.81 times more, the NSE data showed.
Aiming to raise Rs 1,654 crore, the Hyderabad-based firm entered the capital markets with an IPO of 1.6 crore shares in the price range of Rs 850 to 985 a share.
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The issue closed on July 30 for institutional buyers and today was the last day for retail and HNI investors.
The offer, which opened on July 28, attracted investment from many big fund houses. According to banking sources, the IPO has got bids from Reliance Capital, ICICI Pru and some big FIIs, including Goldman Sachs.
The company has already raised Rs 297.71 crore by roping in about 36 funds, including Goldman Sachs, TPG and ICICI Pru, as anchor investors. The firm will allot in total 30.22 lakh shares at Rs 985 a share to these anchor investors.
Merchant banking sources said going by the subscription demand issue price may be fixed at the upper end of price band that is Rs 985 per share. The non-banking finance firm will offer a discount of Rs 50 per share to retail investors.
According to sources, listing of SKS shares may happen on August 16. The EIL's FPO shares are also likely to get listed on the same day, banking sources told PTI earlier. EIL FPO closed on July 30.
The country's largest microfinance firm will use the IPO proceeds to meet its future capital needs. Founded by Vikram Akula -- having US nationality -- SKS is backed by several big private equity players, including Sequoia Capital.
Catamaran Management Services, a fund run by Infosys co- founder and chief mentor NR Narayana Murthy, has also made an investment in the firm. It was the first such investment by Catamaran.