The IPO from Manpasand Beverages Limited (MBL) which was seeking to raise Rs 400 crs in a price band of Rs 290-320 was subscribed. The company had earlier allotted to 11 Anchor investors and 30 entities shares worth Rs 180 crs at the upper band.

The buzz in the market and grey market was absent in the case of MBL. The reasons could be many but by and large when compared to its nine month earnings for the period ended December 2014, the general feeling was that the issue was expensive. Fruit juice business is highly cyclical and is predominantly a 2/3 rd 1/3rd business with the 1st quarter and 4th quarter of the financial year being the dominant ones. The company has reported numbers upto December 2014 and both these quarters are now up for reporting. Hopefully once the numbers are declared there would be more clarity.

The issue was subscribed with QIB’s subscribing their remaining twice and HNI’s a mere 40%. Retail subscription was quite encouraging and was subscribed 1.16 times. There were over 21,000 applications which means that the average application size in retail was about 73-75 shares or 1.6 lots.

Subscription details are appended below:-

The issue is over and the IPO market has seen last week a string of high profile issues filing their draft prospectuses clearly indicating the optimism amongst promoters and merchant bankers. If this is to result in money raising the valuations need to be reasonable and attractive to attract investors.