Shiprocket IPO Sees Strong Subscription on Day 2; Retail Investors Lead the Charge
In a significant development, the initial public offering (IPO) of Shiprocket, a leading e-commerce logistics company, has seen a strong subscription on the second day of the share sale. As per the data available on the Bombay Stock Exchange (BSE), the company has received 2.07 times the subscription, with the retail investors’ portion being subscribed 6.86 times.
Subscription Breakdown: A Tale of Two Worlds
While the category for qualified institutional buyers (QIBs) has seen a relatively low subscription of 0.02 times, the quota for non-institutional investors has received 2.86 times subscription. This indicates that the retail investors have played a significant role in driving the subscription numbers for the Shiprocket IPO.
IPO Details: A Mix of Fresh Issue and Offer for Sale
The Shiprocket IPO, which opened for subscription on August 12, is a mix of a fresh issue of ₹885 crore and an offer for sale (OFS) of ₹732 crore. The size of the IPO is ₹1,617 crore, and the price band has been set at ₹92-97 per share. Investors can apply for the offer in lots of 154 shares and multiples thereof.
Proceeds to be Used: Growth, Repayment, and Inorganic Growth
The fresh proceeds raised through the IPO are proposed to be used for investment in the growth of platforms, repayment of certain borrowings and interest accrued, along with funding inorganic growth acquisitions and general corporate purposes.
Listing and Grey Market Premium
Shares of Shiprocket are slated to list on the BSE and NSE next week on August 19. The grey market premium (GMP) for Shiprocket is at a solid ₹34 apiece, which means that the shares are trading at ₹135 in the unofficial market. At the prevailing GMP, investors can expect a listing pop of 35.05 per cent.
Analyst Views: A Mixed Bag
The IPO has analysts divided on whether to apply or not, even as they find its valuations compelling. However, for those concerned, the pitfall lies in its loss-making nature, which is not suitable for conservative value investors.
Book-Running Lead Managers
The book-running lead managers for the offer are Axis Capital, BofA Securities India, JM Financial, and Kotak Mahindra Capital Company.
Conclusion
The strong subscription of the Shiprocket IPO on the second day is a significant development, indicating that the retail investors have played a key role in driving the subscription numbers. While the IPO has seen a mixed reaction from analysts, the strong subscription numbers suggest that the company has a strong following among investors. As the IPO concludes on August 14, investors will be eagerly waiting to see the final subscription numbers and the listing performance of the company on August 19.