FSN E-Commerce Ventures Limited, owners of the popular cosmetics and fashion brand Nykaa had tapped the capital markets with its fresh issue for Rs 630 crs and an offer for sale of 4,19,72,660 equity shares in a price band of Rs 1,085 to Rs 1,125 listed on the bourses. The discovered price on BSE was Rs 2,001 at which price 3,69,726 shares were traded. On NSE, the discovered price was Rs 2,018 at which price 68,50,891 shares were traded. Approximately 72.2 lac shares were traded at the discovered price on the two exchanges combined.

Earlier the company had completed allocation to anchor investors. The company allotted 2,12,96,397 equity shares at the top end of the price band of Rs 1,125 to 174 entities. One-third of the total allocation has been made to 21 mutual funds, through a total of 93 schemes. In what has become a standard practice amongst such large issues, there was a source-based story in the newspapers that said the anchor book was subscribed around 40 times. What was finally reported on the basis of the allotment advertisement released by the company was a disappointing 1.0375 times. There were 174 applications and the number of equity shares applied was 2,20,95,348 shares. The allotment was to the tune of 2,12,96,397 shares. It’s time the regulator looked into this issue and stopped creating unnecessary hype and euphoria by such bogus source-based stories. The same ploy was used in the case of the Zomato Limited issue.

The issue had opened on Thursday the 28th of October and closed on Monday the 1st of November. The size of the issue at the top end of the price band was Rs 5,351.92 crs. Earlier the company completed allocation to anchor investors.

The issue was subscribed 82.47 times. The QIB portion was subscribed 92.17 times, the HNI portion was subscribed 112.51 times, the Retail portion was subscribed 12.29 times and the Employee reservation was subscribed 1.88 times. There were 35.70 lac applications. The cost of funding which has doubled in the present list of primary issuances from 6.5% to 13% is Rs 360 per share. Opportunism at its best or worst and each person trying to extract its pound of flesh.

The high of the day on BSE was Rs 2,248.10, the low was Rs 1,994.10 and the close was Rs 2,206.70. The gain was Rs 1,081.70 or 96.15%. On NSE, the high of the day was Rs 2,248, the low was Rs 2,000 and the close was Rs 2,205.80 a gain of Rs 1,080.80 or 96.07%.

The traded volume on the two exchanges combined was 85.56 lac shares which was 0.76 times the IPO size of 475.75 lac shares and 1.37 times the non-anchor portion of 262.79lac shares. Delivery volume was 184.20 lac shares which were 51.24% of the traded volume. It was 38.72% of the issue size and 70.09% of the non-anchor portion. The weighted average of the day’s trade was Rs 2089.11 on BSE and Rs 2089.55 on NSE.

In terms of institutional trade, none were reported on either BSE or NSE.

The issue has performed beyond expectation and all successful applicants have made a killing.

Further with the deadline of RBI of 1st April 2022 on HNI borrowing of Rs 1 cr per individual looming large, it would be interesting to see whether the merchant banking community comes up with new alternatives for funding.

One 97 Communications Limited, the company which own the brand Paytm saw its IPO subscribed 1.95 times. Earlier the company had completed allocation to anchor investors. The company is tapping the capital markets with its fresh issue to raise Rs 8,300 crs and an offer for sale of Rs 10,000. The total issue size would be Rs 18,300 crs making it the largest issue ever to hit the Indian Capital Markets. The price band is Rs 2,080-2,150.

The company on Wednesday allotted 3,83,02,326 shares at Rs 2,150 to 122 entities. The anchor allocation raised Rs 8,235 crs. The highest allocation was made to Canada Pension Plan Investment Board who was allotted 43,61,964 shares or 11.4% of the anchor allocation. This was followed by Blackrock Global Funds who were allotted 40,38,030 shares or 10.5% of the anchor allocation. Four domestic mutual funds were allotted 48,85,386 equity shares or 12.8% of the anchor book. These were Aditya Birla, HDFC, Mirae Asset and BNP Paribas. The top two anchor investors were allotted 21.9% of the anchor book.

The QIB portion was subscribed 2.88 times, HNI portion was subscribed 0.25 times and Retail portion was subscribed 1.72 times. The overall issue was subscribed 1.95 times. There were 14.40 lac applications.

Full details of the subscription are given below: –