Ruchi Soya FPO - Subscription Day 2

5paisa Research Team 5paisa Research Team 15th December 2022 - 02:04 am

The Rs.4,300 crore FPO of Ruchi Soya Ltd, consisting entirely of a fresh issue of shares worth of Rs.4,300 crore, saw tepid response on Day-1 of the FPO. As per the combined bid details put out by the BSE at the end of Day-2, Ruchi Soya FPO was subscribed 0.37X or 37% overall, with some demand pick-up seen in the retail segment and the QIB segment.

Interestingly, it was the employee quota that is already oversubscribed 3.68 times, although the quota is quite small at just about 10,000 shares. The follow-on public offer (FPO) will close for subscription on Monday, 28th March 2022.

As of close of 25th March 2022, out of the 489.46 lakh shares on offer in the FPO, Ruchi Soya Ltd saw bids for 180.26 lakh shares. This implies an overall subscription of 0.37X or 37%. The granular break-up of subscriptions was dominated by QIB investors and retail investors with fair demand from the HNIs.

Normally, it is only on the last day of bidding, the NII/HNI bids and the QIB bids build up substantial momentum. We should get a clearer picture by the end of third day of subscription only.

Ruchi Soya FPO Subscription Day 2

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.41 Times
Non Institutional Investors (NII)	0.26 Times
Retail Individuals	0.39 Times
Employees	3.68 Times
Overall	0.37 times

QIB Portion

Let us first talk about the pre-FPO anchor placement. On 23rd March, Ruchi Soya Ltd did an anchor placement of 1,98,43,153 shares at the upper end of the price band of Rs.650 to a total of 46 anchor investors raising Rs.1,290 crore, representing 30% of the total issue size.

The list of QIB anchors included a number of marquee international names like YAS TAKAUL, SBI Life, Authum Investments, Winro Commercial, AG Dynamics Fund, Societe Generale, Volrado Fund, Quant Fund, Kotak MF, Birla MF, Belgrave Investments, Cohesion MK Best Ideas, Alchemy, ASK India, HDFC Life Insurance and the Oman Sovereign Fund.

Check - Ruchi Soya FPO - Subscription Day 1

The QIB portion (net of anchor allocation as explained above) has a quota of 139.82 lakh shares of which it has got bids for 57.31 lakh shares at the close of Day-2, implying 0.41X or 41% subscription for QIBs at the close of Day-2. However, QIB bids typically get bunched on the last day but the strong response in the anchor placement shows that there is healthy and substantial institutional appetite for the FPO.

HNI / NII Portion

The HNI portion got subscribed 0.26X or 26% (getting applications for 27.12 lakh shares against the quota of 104.86 lakh shares). This is a relatively tepid response at the close of Day-2 with most of the response coming from HNI individuals. However, this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the FPO only.

Retail Individuals

The retail portion was subscribed a relatively better 0.39X or 39% at the close of Day-2. Retail interest is normally seen in the first 2 days, so the eventual interest level may be lower. It must be noted that retail allocation is 35% in this FPO.

For retail investors; out of the 244.68 lakh shares on offer, valid bids were received for 95.46 lakh shares, which included bids for 77.51 lakh shares at the cut-off price. The FPO is priced in the band of (Rs.615-Rs.650) and will close for subscription on 28th March 2022.

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