The initial public offering (IPO) of affordable housing financer India Shelter Finance and stationery manufacturer DOMS Industries have managed to garner good response from investors on the first day of bidding. On the back of strong response from retail investors, the IPO of DOMS Industries was booked 6 times, while that of India Shelter Finance was subscribed 1.5 times by 5:00 PM on December 13, the exchange data showed. Both these issues will remain open for subscription for three trading days (till December 15), and they look to raise ₹1,200 crore each via IPO route.
The IPO of DOMS Industries received bids for 5.04 crore equity shares as compared to issue size of 8.83 lakh shares, the exchange data showed. The quota reserved for retail investors was booked over 19.13%, while the quota for qualified institutional buyers (QIB) was subscribed merely by 0.06 times. The portion set aside for non-institutional investors (NIIs) was booked 7.95 times.
As per the offer document filed with SEBI, the company has reserved 75% of the issue for QIBs, 15% for NIIs, and the remaining 10% for retail investors, which includes a reservation of ₹5 crore worth of shares for employees of the company, who will get these shares at a discount of ₹75 each to the final issue price.
The Gujarat-based company, a leading player in the Indian stationery and art products market, has set price band at ₹750-790 per share. The IPO of DOMS is a mix of a fresh issuance of shares worth ₹350 crore, and an offer for sale (OFS) of shares worth ₹850 crore by existing shareholders. The lot size is 18 shares and in multiples thereof, which means minimum amount for retail investors would be ₹14,220 for 1 lot and maximum of ₹199,080 for 14 lots or 252 shares. The company has already raised ₹537.75 crore by allocation of 68,06,961 equity shares to anchor investors for ₹790 per share.
Incorporated in 2006, DOMS aims to use funds raised through the fresh issue to fund the cost of establishing a new manufacturing facility, to expand the company’s production capabilities for a wide range of writing instruments, water colour pens, markers, and highlighters, as well as for general corporate purposes.
On the other hand, the public offer of India Shelter Finance was booked 1.48 times on the first day of bidding, receiving bids for 2.65 crore equity shares against issue size of 1.79 crore shares. Segment-wise, the retail portion was booked 1.89 times, NIIs by 1.74 times, and QIBs by 0.57 times. The company has reserved half of the issue for QIBs, 15% for NIIs, and the remaining 35% for retail investors.
The IPO comprises a fresh issue of equity shares worth ₹800 crore and an offer for sale of shares worth ₹400 crore. Backed by WestBridge Capital and Nexus Venture Partners, the company has fixed price band at ₹469-493 per share. Ahead of the IPO, the Gurugram-based housing financing company raised ₹360 crore via anchor book by allocating 7,302,229 equity shares to 38 anchor investors at the price of ₹493 per share.
The lot size of the IPO is 30 shares and in multiples thereof, which means the minimum application amount will be ₹14,790 for one lot and maximum will be ₹192,270 for 13 lots or 390 shares. The company has reserved half of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 35% for retail investors.
The company intends to use the fund raised from the issuance of fresh equities to meet future capital requirements toward onward lending. The fund will be partially utilised for general corporate purposes.
Incorporated in 1998, India Shelter Finance Corporation provides home loans and loans against property to customers in the low and middle-income segments. As of March 31, 2023, India Shelter Finance had a network of 183 branches spread across 15 states with a significant presence in the states of Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat.
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