Sapphire Foods India IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 13th December 2022 - 03:56 pm

The Rs.2,073 crore IPO of Sapphire Foods India, consisting entirely of an offer for sale (OFS) of Rs.2,073 crore, saw subdued response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the close of Day-1, Sapphire Foods India IPO was subscribed 0.49X overall, with reasonable demand coming only from the retail segment. The issue closes on 11th November.

As of close of 09th November, out of the 96.63 lakh shares on offer in the IPO, Sapphire Foods India saw bids for 47.11 lakh shares. This implies an overall subscription of 0.49X. The granular break-up of subscriptions was dominated by the retail investors. QIB bids and NII bids are expected to gather momentum on the last day, as is the general trend in the IPO market.

Sapphire Foods India IPO Subscription Day-1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.02 Times
Non Institutional Investors (NII)	0.05 Times
Retail Individuals	2.56 Times
Employees	N.A.
Overall	0.49 times

QIB Portion

The QIB portion of the Sapphire Foods IPO was subscribed just 0.02 times at the end of Day-1. On 08th November, Sapphire Foods India did an anchor placement of 79,06,473 shares at the upper end of the price band of Rs.1,180 to 53 anchor investors raising Rs.932.96 crore.

The list of QIB investors included a number of marquee global names like Government of Singapore, MAS, Fidelity, ADIA, Crestwood Capital, HSBC Global, Lion Global, Carmignac Ontario Teacher’s Pension Fund etc. Domestic anchor investors included ICICI Pru Life, Sundaram Mutual Fund, Bajaj Allianz, HDFC MF, Kotak MF among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 52.71 lakh shares of which it has got bids for 0.83 lakh shares, implying a subscription ratio of 0.02X for QIBs at the close of Day-1. QIB bids typically get bunched on the last day but the heavy demand for the anchor placement forebodes well for the Sapphire IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 0.05X (getting applications for 1.29 lakh shares against the quota of 26.35 lakh shares). This is a tepid response on Day-1 but this segment normally sees the maximum response bunched on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day of the IPO.

Retail Individuals

The retail portion was subscribed an impressive 2.56X at the end of Day-1, showing strong retail appetite. However, it must be noted that retail allocation is just 10% in this IPO. For retail investors; out of the 17.57 lakh shares on offer, valid bids were received for 44.99 lakh shares, which included bids for 36.05 lakh shares at the cut-off price.

The IPO is priced in the band of (Rs.1,120-Rs.1,180) and will close for subscription on 11th November 2021.

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