Retail frenzy for DOMS, India Shelter IPOs
Mumbai: The primary market saw a surge in investor interest as both DOMS Industries Ltd and India Shelter Finance Corp. Ltd initial public offerings (IPO) were oversubscribed by retail investors on the first day. The public offers of Tata Technologies Ltd, Gandhar Oil Refinery (India) Ltd, and Flair Writing Industries Ltd were also oversubscribed on Day 1.
On the inaugural day, retail portion of DOMS IPO was oversubscribed by 19.17 times, with the investors bidding for 30.54 million shares, compared to the 1.59 million shares on offer.
Overall, the DOMS IPO was subscribed 5.72 times with bids for 50.5 million shares against 8.83 million shares on offer. Non-institutional investor portion, including high net-worth individuals and corporate bodies, also showed strong interest, with the issue being oversubscribed by 7.96 times, with bids for 19 million shares against the 2.38 million available for subscription. However, qualified institutional buyers’ participation remained muted at 6%.
India Shelter’s IPO also got a positive response with retail investors’ portion being subscribed 1.9 times, translating into bids for 16.97 million shares against the 8.95 million shares on offer. Overall, the IPO received subscription of 1.48 times, with investors bidding for 26.5 million shares against the 17.9 million shares on offer. Non-institutional investors also showed interest, subscribing 1.74 times their allotted portion, with bids for 6.68 million shares against the 3.83 million on offer. QIBs participation was at 57%.
Experts said shares of both DOMs and India Shelter were trading at a premium in the grey market, signalling investor expectations of a robust listing. DOMS Industries shares commanded a premium of 500, while India Shelter Finance shares were trading at a premium of 165.
DOMS set the price band for the IPO at ₹750-790 per equity share, and India Shelter at ₹469-493 per share.
DOMS’ IPO included a fresh offering of ₹350 crore and offer for sale of ₹850 crore, and India Shelter’s fresh offering is ₹800 crore and OFS of ₹400 crore.
DOMS’ promoters Fabbrica Italiana Lapis ed Affini S.p.A, Sanjay Mansukhlal Rajani, and Ketan Mansukhlal Rajani hold 51%, 8.63% and 8.63%, respectively in the company.
DOMS Industries successfully raised ₹538 crore from 55 anchor investors. The company allotted 68.06 lakh shares, priced at the upper band of ₹ 790 per share, to these institutional investors. This strong response is from marquee investors like Goldman Sachs Fund, Fidelity Fund, Abhu Dhabi Investment Authority, Motilal Oswal Fund, HDFC MF, CICI Prudential, Tata AIA Life Insurance, Max Life Insurance, HDFC Life, Aditya Birla SunLife, SBI Fund, Axis Fund etc.
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Published: 13 Dec 2023, 09:53 PM IST
