Nazara Technologies, Suryoday Small Finance Bank, Kalyan Jewellers, Craftsman Automation: IPO Updates
People look up at a screen and an electronic ticker board outside the Bombay Stock Exchange building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Nazara Technologies, Suryoday Small Finance Bank, Kalyan Jewellers, Craftsman Automation: IPO Updates

Four initial public offerings remained open to investors on March 17, out of which two witnessed strong interest, while two others received muted response.

Here’s how the four IPOs fared:

Nazara Technologies IPO: Day 1

The Indian gaming and diversified sports platform’s initial public offering was fully subscribed on the first day itself led by retail investors.

The issue —the eighteenth so far this year—was subscribed 4.01 times as of 5 p.m. on March 17, according to exchange data.

Subscription details:

  • Institutional investors: 0.36 times.

  • Non-institutional Investors: 2.85 times.

  • Retail investors: 16.74 times.

  • Employee: 2.28 times.

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The issue —which is set to end on March 19—comprises 52.94 lakh equity shares on offer at Rs 1,100-1,101 apiece.

Veteran investor Rakesh Jhunjhunwala owns 32.94 lakh shares—or 11.51% stake—in the company as on Sept. 30, 2021, according to the company’s draft red herring prospectus.

Suryoday Small Finance Bank IPO: Day 1

The initial share sale of Suryoday Small Finance Bank received tepid response from investors on the opening day of its offering.

The Rs 580-crore issue was subscribed 0.42 times on March 17, according to data available on the bourses. The IPO will close on March 19.

Subscription details:

  • Institutional investors: 0.

  • Non-institutional investors: 0.04 times.

  • Retail investors: 0.84 times.

  • Employee: 0.06 times.

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The bank plans to sell 81.5 lakh shares as part of the offering, with a further offer for sale of up to 1.09 crore shares, adding up to 17.99% of paid-up equity. Employees of the bank will have 5 lakh shares reserved for them, issued at a discount of Rs 30 per share. The shares will be issued within a price band of Rs 303-305 apiece, with the small finance bank valued at around Rs 3,200 crore.

According to the bank’s red herring prospectus, the fund raising will help it to augment its capital base. As of Dec. 31, the bank’s capital adequacy ratio stood at 41.17%, where Tier-1 capital constituted 34.3%.

Further, the offering will help the bank meet regulatory listing requirements. Small finance banks are required to list within three years of reaching a net worth of Rs 500 crore, according to Reserve Bank of India guidelines. Suryoday Small Finance Bank had crossed the milestone in November 2017, making the listing necessary.

Kalyan Jewellers IPO: Day 2

Warburg Pincus-backed Kalyan Jewellers initial share sale was subscribed 1.22 times as of 5 p.m. on March 17 led by retail investors and employee, according to exchange data. The IPO will close on March 18.

Subscription Details:

  • Institutional investors: 0.25 times.

  • Non-institutional investors: 0.9 times.

  • Retail investors: 1.92 times.

  • Employees: 1.93 times.

The company will use Rs 600 crore from proceeds to fund working capital requirements and the rest for general corporate purposes.

Craftsman Automation IPO: Day 3

The Rs 824-crore initial public offering was subscribed 3.8 times on Wednesday, the final day of bidding. The issue received strong response from institutional and retail investors, according to exchange data.

Subscription Details:

  • Institutional investors: 5.21 times.

  • Non-institutional investors: 2.84 times.

  • Retail investors: 3.41 times.

The company plans to use IPO proceeds to retire some of its debt and for general corporate purposes.

Also read: Laxmi Organic’s IPO Subscribed 106.74 Times On Final Day

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