Nazara Technologies, Suryoday Small Finance Bank, Kalyan Jewellers: IPO Updates
A man stands in front of an electronic ticker board showing stock information figures outside the Bombay Stock Exchange in Mumbai. (Photographer Dhiraj Singh/Bloomberg)

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

Three initial public offerings remained open to investors on March 18, out of which one witnessed strong interest, while two others received muted response.

Here’s how the Three IPOs fared:

Kalyan Jewellers IPO: Day 3

Kalyan Jewellers’ Rs 1,175-crore IPO has become the least subscribed issue of 2021 on its third and final day.

The Warburg Pincus-backed jeweller’s issue was subscribed 2.64 times at 5 p.m. on March 18 led by employees who bid for 3.78 times the shares on offer, according to exchange data.

The issue in which shares were sold at Rs 86-87 apiece received bids for over 35.64 crore shares compared to 13.50 crore shares on offer.

Subscription Details:

  • Institutional investors: 2.79 times.

  • Non-institutional investors: 1.93 times.

  • Retail investors: 2.85 times.

  • Employees: 3.78 times.

According to the company prospectus, it had posted a loss of Rs 81.9 crore during April-December because of the Covid-19 pandemic. The company had availed a moratorium to defer payments to certain loans. The jeweller has Rs 55.7 crore in long-term borrowings and Rs 2,635.5 crore in short-term borrowings, including fund interest of Rs 30.8 crore on account of Covid-19 moratorium. Total debt, including metal gold loans, was Rs 3,667 crore as of December.

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

Axis Capital, Citigroup Global, ICICI Securities, SBI Capital Markets, BOB Capital Markets were the book running lead managers to the issue

Nazara Technologies IPO: Day 2

The Indian gaming and diversified sports platform’s initial public offering attracted strong investor interest on the second day.

The Rs 583 crore IPO was subscribed 10.55 times as of 5 p.m. on March 18 led by retail investors who bid 44.47 times the shares on offer, according to exchange data.

Subscription details:

  • Institutional investors: 0.72 times.

  • Non-institutional Investors: 7.73 times.

  • Retail investors: 44.47 times.

  • Employee: 5.53 times.

Also read: Nazara Technologies IPO: All You Need To Know

The issue—which ends 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 2

The initial public offering of Suryoday Small Finance Bank was fully subscribed on its second day.

The Rs 580-crore issue was subscribed 1.01 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: 0.20 times

  • Retail investors: 2 times.

  • Employee: 0.17 times.

Also read: Suryoday Small Finance Bank IPO: All You Need To Know

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%, while tier-1 capital was at 34.3%.

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.

Research Reports On Suryoday Small Finance Bank

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