Windlas Biotech limited and Exxaro Tiles are set to enter the market and make their respective debuts on Monday. Both companies were looking to list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on August 16. Both IPOs saw a tremendous response from investors on the days they were open for trading and subscription. The public issues opened on August 4 and closed on August 6 for both companies. Again in both the public issues, it was the retail investors that arguably played the most significant role in terms of subscription.
Windlas Biotech IPO
The Windlas Biotech IPO received a strong response from investors during its days of subscription as investors had subscribed to the issue a total of 22.44 times over a period of three days. The public issue was subscribed by the retail category a total of 24.22 times. The portion for the qualified institutional buyers (QIBs) was subscribed 24.40 times. Lastly. The non-institutional investors had subscribed to the issue a total of 15.73 times against their allotted shares.
The domestic pharmaceutical formulations manufacturer is likely to list on the stock exchanges at around Rs 550, which stands against an issue price of Rs 460 per share. The issue was trading at a grey market premium of Rs 85 before the listing. This indicated that the shares were trading at a premium of Rs 533 to Rs 545 per equity share on the unlisted market. This is around 18.5 per cent over the issue price of Rs 460 as per data on IPO Watch.
The issue size itself was Rs 401.54 crore with a face value of Rs 5 per equity share and a price band of Rs 448 to Rs 460 per equity share. It was also a book-built issue that had the objective of using the funds to buy the needed equipment for the expansion of the company’s existing facility in Dehradun Plant IV. The rest of the funds were meant for financing the incremental working capital requirements of the company, repayment and pre-payment of company borrowings as well as general corporate purposes.
Exxaro Tiles IPO
The Exxaro Tiles IPO which is also set to list on Monday could expect to do so around 10 per cent. The public issue received a massive response from investors as the issue was subscribed around 22.65 times against its allotted shares by the time the subscriptions closed. The retail investors had subscribed to the issue the most with an overwhelming 40.05 per cent against their allotted shares. The QIBs subscribed to the issue a total of 17.67 times, while the NIIs subscribed to it 5.36 times. There were also employee subscriptions that reached 2.53 times.
The listing could see a price of Rs 132, which would translate to a 10 per cent premium over the upper end of the public issue’s price band of Rs 120. The grey market premium for the issue was listed as Rs 10 per share on IPO Watch on Monday prior to the listing. This indicated that the shares were trading at a premium of Rs 128 to Rs 130 per equity share on the unlisted grey market.
The issue size for the company was Rs 161.09 crore with a total of 13,424,000 equity shares. It was also made up of a fresh issue worth Rs 134.23 crore and an offer for sale (OFS) that was worth Rs 26.86 crore. The price band of the issue was Rs 118 to Rs 120 per share.
The company aimed to use the funds from the issue to make repayments and pre-payments of borrowings availed by the company. The rest was set to go towards general corporate purposes and meet the working capital requirements.
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