Shiprocket IPO retail portion booked 7.8x on Day 2; overall issue subscribed 2.44x, GMP climbs to 35%

Shiprocket’s ₹1,618-crore initial public offering (IPO) is witnessing strong investor interest midway through its three-day bidding window, with the issue subscribed 2.44 times by 2 pm on Thursday, the second day of the offer.

As per the exchange data, investors have placed bids for 23.01 crore shares against 9.44 crore shares on offer, with the issue attracting 7.11 lakh applications and bids worth around ₹2,244 crore. The company has fixed the price band at ₹94-97 per share.

The retail segment has emerged as the biggest driver of demand. The portion reserved for retail investors was subscribed 7.80 times. The non-institutional investor (NII) portion was subscribed 3.55 times, while the employee quota was subscribed 10.82 times.

Institutional participation, however, remained muted so far. The qualified institutional buyers (QIB) portion was subscribed just 0.03 times.

As per the IPO document filed with the Sebi, 75% of the net offer is reserved for QIBs, up to 15% for NIIs and up to 10% for retail investors.

The IPO, which opened on August 12, will close on August 14, with the shares scheduled to list on the BSE and NSE on August 19.

GMP points to strong debut

In the grey market, Shiprocket shares were commanding a premium of ₹34 over the issue price, according to InvestorGain. At the upper price band of ₹97, the estimated listing price stands at ₹131, implying a potential listing gain of around 35.05%.

Grey market premiums, however, are unofficial indicators and may change before listing.

Ahead of the IPO, Shiprocket raised ₹727.41 crore from anchor investors by allotting 7.50 crore shares to anchor investors at ₹97 apiece, with the book attracting several large domestic and global institutions.

Among the investors participating in the anchor book were SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Life Insurance Company, Tata AIA Life Insurance Company, Nippon Life India Mutual Fund, Nomura Funds Ireland, Societe Generale and New York State Teachers Retirement System.

Where will the IPO money go?

Shiprocket is raising ₹885.60 crore through a fresh issue, while existing shareholders are offering shares worth ₹731.98 crore through an offer for sale.

The company plans to deploy a large portion of the fresh capital towards expanding its platform and strengthening its technology capabilities. Around ₹365.60 crore has been earmarked for platform growth and business expansion, while ₹205.80 crore will be spent on marketing initiatives.

Another ₹159.80 crore will go towards technology infrastructure and capabilities. Shiprocket also plans to use ₹210 crore to repay or prepay outstanding borrowings, with the remaining funds earmarked for acquisitions and general corporate purposes.

Founded in 2011, Shiprocket operates an e-commerce enablement platform offering logistics, shipping, fulfilment, payments and technology solutions to MSMEs, direct-to-consumer brands and large retailers. The company is backed by investors including Temasek, Tribe Capital, Bertelsmann and Eternal.

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