InvestorQ : How was the subscription response to Bikaji Foods IPO?
Dhwani Mehta made post

How was the subscription response to Bikaji Foods IPO?

Dilmini Mercia answered.
3 weeks ago

The Bikaji Foods International Ltd IPO is an entire offer for sale of Rs881 crore. The IPO saw fairly steady response on Day-1 and Day-2 of the IPO and closed with healthy subscription numbers at the close of Day-3 of 26.67X overall. As of close of 07th November 2022, out of the 206.37 lakh shares on offer Bikaji saw bids for 5,504.01 lakh shares. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors

First a word on the anchor placement, which is carved out of the QIB portion. The anchor placement of 87,37,194 shares was done a day ahead of the IPO opening at the upper price band of Rs.300. A total of 36 anchor investors got shares worth Rs.262.12 crore. Premium investors included Government of Singapore, Nomura Funds Ireland, Blackrock Global, Goldman Sachs, Neuberger Berman, Carmignac Portfolio etc. The QIB portion had a quota of 58.25 lakh shares of which it got bids for 4,696.64 lakh shares implying 80.63 times subscription at the close of Day-3.

The HNI or NII portion was subscribed a more modest 7.10X as it got valid bids for 310.03 lakh shares against the quota of 43.69 lakh shares. Bulk of funded and corporate applications, come on the last day of the IPO, but that kind of tapered in momentum on the las day. HNI portion is now split into 2 parts. The B-HNI category (above Rs10 lakh bid) got subscribed 7.47X while the S-HNI category (Rs2 lakhs to Rs10 lakh category) was subscribed 6.34 times.

Finally a look at the retail subscription, which was decent at 4.77X at the close of Day-3. It must be noted that retail allocation is a full 35% in this IPO, so this subscription figure is all the more appreciable. For retail investors; out of 101.93 lakh shares on offer in total, valid bids came for only 486.40 lakh shares, and this included bids for 419.29 lakh shares at cut-off price. The IPO is priced in the band of (Rs.285-Rs.300) and an upper end price discovery now looks very likely. The IPO has already closed for subscription as of the close of Monday, 07th November 2022.