SJS Enterprises Ltd IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 13th December 2022 - 04:35 pm

The Rs.800 crore IPO of SJS Enterprises Ltd, consisting entirely of offer for sale (OFS) of Rs.800 crore, saw a tepid response on Day-1. As per the combined bid details put out by the BSE, SJS Enterprises Ltd IPO was subscribed just 0.32X overall, with bulk of the demand coming from the retail segment which saw robust activity on the first day. The issue closes on 03rd November.

As of close of 01st November, out of the 105.46 lakh shares on offer in the IPO, SJS Enterprises Ltd saw bids for 34.05 lakh shares. This implies an overall subscription of 0.32X. The granular break-up of subscriptions were tilted in favour of retail investors with HNIs and QIBs hardly participating on the first day of the IPO. QIB bids and NII bids typically come in only on the last day of the IPO.

SJS Enterprises IPO Subscription Day-1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.00 Times
Non Institutional Investors (NII)	0.01 Times
Retail Individuals	0.64 Times
Employees	N.A.
Overall	0.32 times

QIB Portion

The QIB portion of the SJS Enterprises IPO saw nil subscription at the end of Day-1. On 29th October, SJS Enterprises Ltd did an anchor placement of 44,28,023 lakh shares at the upper end of the price band of Rs.542 to 18 anchor investors raising Rs.240 crore.

The list of QIB investors including a number of marquee names like Tara Emerging Asia, Societe Generale, Nomura, Goldman Sachs, Citigroup, Axis MF, Franklin Templeton MF, Aditya Birla Sun Life Insurance, Edelweiss, Avendus; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 30.13 lakh shares of which it has got bids for Nil shares on Day-1 of the IPO. QIB bids typically get bunched on the last day, but anchor response has been robust and that is good news.

HNI / NII Portion

The HNI portion got subscribed 0.01X (getting applications for 0.31 lakh shares against the quota of 22.60 lakh shares). This is a very tepid response on Day-1 and this segment normally sees response on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better.

Retail Individuals

The retail portion was subscribed a robust 0.64X at the end of Day-1, showing strong retail appetite. Retail allocation for this IPO is 35% of the offer size. For retail investors; out of the 52.73 lakh shares on offer, valid bids were received for 33.75 lakh shares, which included bids for 27.35 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.531 – Rs542) and will close for subscription on 03rd November 2021.

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