Sapphire Foods India IPO subscription Day-3

5paisa Research Team 5paisa Research Team 10th December 2022 - 05:01 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 but managed to get fully subscribed at the end of Day-2. As per data put out by the BSE at the close of Day-3, Sapphire Foods India IPO was subscribed 6.62X overall, with strong demand coming from the retail segment followed by QIBs. The issue has closed on 11th November.

As of close of 11th November, out of the 96.63 lakh shares on offer in the IPO, Sapphire Foods India saw bids for 639.45 lakh shares. This implies an overall subscription of 6.62X. The granular break-up of subscriptions was dominated by the retail investors followed by QIB bids. As expected, the QIB bids and NII bids did gather momentum on the last day, as is the general trend in the IPO market.

Sapphire Foods India IPO Subscription Day-3

Category	Subscription Status
Qualified Institutional Buyers (QIB)	7.50 Times
Non Institutional Investors (NII)	3.46 Times
Retail Individuals	8.70 Times
Employees	N.A.
*Overall*	*6.62 times*

QIB Portion

The QIB portion of the IPO was subscribed a good 7.50 times at the close of Day-3. 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 395.27 lakh shares, implying a subscription ratio of 7.50X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and they managed to boost the subscription for Sapphire IPO overall.

HNI / NII Portion

The HNI portion got subscribed 3.46X (getting applications for 91.25 lakh shares against the quota of 26.35 lakh shares). This is a much better response on Day-3 and 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 8.70X at the end of Day-3, 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 152.93 lakh shares, which included bids for 119.37 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.1,120-Rs.1,180) and has closed for subscription on 11th November 2021.