Fino Payments Bank Limited which had tapped the capital markets with its fresh issue of Rs 300 crs and an offer for sale of 1,56,02,999 equity shares in a price band of Rs 560-577 debuted on the bourses, and at end of day lost 5.5%. The issue which was allotted at RS 577 saw the share close at Rs 545.25, a loss of Rs 31.75 or 5.5%. The discovered price on BSE was Rs 548 at which price 6,283 shares were traded while on NSE it was Rs 544.35, at which price 98,258 shares were traded. The issue garnered Rs 1200.29 crs at the allotted price. The issue had opened on Friday the 29th of October and closed on Tuesday the 2nd of November. Earlier it had completed allocation to anchor investors.

The company has allotted 93,37,641 equity shares to 13 anchor investors comprising of 29 entities. This includes 5 domestic mutual funds comprising of 17 entities who were allotted 39.05% of the anchor allocation. The top allocations were made to Fidelity who was allotted 16.67% of the anchor book followed by Pinebridge who was allotted 15.75%. This was followed by the domestic funds led by Aditya Birla who was allotted 12.96% and Motilal Oswal who was allotted 9.44%. The top four anchor investors were allotted 54.82% of the anchor book.

The QIB portion was subscribed 1.65 times, HNI portion was undersubscribed at 0.21 times, Retail portion was subscribed 5.92 times while Employee portion was subscribed 0.93 times. There were 3.95 lac applications in all.

The high of the day on BSE was Rs 583.55, the low was Rs 510.80 and the close was Rs 545.25. The loss was Rs 31.75 or 5.50%. On NSE, the high of the day was Rs 582.95, low was Rs 511.05 and the close was Rs 543.90 a loss of Rs 33.10 or 5.74%.

The traded volume on the two exchanges combined was 107.37 lac shares which was 0.52 times the IPO size of 208.02 lac shares and 0.94 times the non-anchor portion of 114.64 lac shares. Delivery volume was 37.06 lac shares which was 34.52 % of the traded volume. It was 17.82 % of the issue size and 32.33 % of the non-anchor portion. The weighted average of the day’s trade was Rs 542.36 on BSE and Rs 542.10 on NSE.

In terms of institutional trades, two trades on the sell side were reported on NSE. In the first, Société Générale sold 12,10,187 shares at Rs 528.86 on NSE. In the second trade, BNP Paribas Arbitrage fund sold on a net basis 9,52,680 shares at Rs 544.85 also on NSE.

The share has had a poor listing and what is currently worrisome is the fact that delivery volumes are very poor. Just about a third of the non-anchor has been delivered which means that the delivery must pick up for the overhang to get absorbed.

Latent View Analytics Limited which had tapped the capital markets with its fresh issue for Rs 474 crs and an offer for sale of Rs 126 crs in a price band of Rs 190-197 received massive subscription and was oversubscribed 338.51 times. The issue had opened on Wednesday the 10th of November and closed on Friday the 12th of November.

QIB portion was subscribed 150.80 times, HNI portion was subscribed 881.96 times, Retail portion was subscribed 123.83 times and Employee portion was subscribed 4.03 times. There were 37,61,441 applications and on basis of lots the retail portion was subscribed 94.91 times. The issue garnered subscription of Rs 1.13 lac crs against a issue size of Rs 600 crs. This has now become the most subscribed issue in the last 12-13 years and has overtaken the recent issue of Paras Defence.

Earlier the company allotted 1,35,53,898 equity shares at Rs 197 to 19 anchor investors comprising of 34 entities. The highest allocation was made to Abu Dhabi Investment Authority of 10,15,968 shares or 7.5% of the anchor book. The company also allotted an almost equal number of shares ranging between 6.7% – 6.9% of the anchor book to nine anchor investors. The company allotted 82,23,346 shares or 60.7% of the anchor book to 12 domestic mutual funds comprising of 25 anchors. The names include Aditya Birla Sun Life AMC, Ashoka India, Axis Mutual Fund, Kotak, Nippon and Mirae amongst others.

Looking at the anchor book, one can surmise that the same has been very evenly distributed with the top 10 anchors being allotted roughly 69% of the anchor book.

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Sapphire Foods Limited which had tapped the capital markets with its offer for sale of 1,75,69,941 equity shares in a price band of Rs 1,120-1,180 was subscribed 6.45 times overall. Earlier the company had completed allocation to anchor investors. The issue had opened on Tuesday the 9th of November and closed on Thursday the 11th of November.

The QIB portion was subscribed 7.50 times, HNI portion was subscribed 3.46 times and Retail portion was subscribed 7.76 times. There were 9.87 lac applications and on basis of lots the retail portion was subscribed 6.75 times. The issue has received muted response and at a time when massive oversubscription is the norm, all buckets were subscribed in single digits.

Competitor and the other franchisee of Yum Foods, who has turned net positive and declared profits for the quarter ended September 2021, saw its share price touch a new high of Rs 168.40 and close at Rs 160.55. the issue which listed on 16th of August had issued shares at Rs 90.

The company allotted 79,06,473 equity shares to 30 anchor investors comprising of 53 entities at the top end of the price band of Rs 1,180. The highest allocation was made to Fidelity Funds who were allotted 12,71,220 shares or 16.07% of the anchor book. This was followed by Government of Singapore who was allotted 8,56,884 shares or 10.84% of the anchor book. Another associate, Monetary authority of Singapore was allotted 1,77,444 equity shares or 2.24% of the anchor book. This made a total of 10,34,328 shares or 13.08% of the anchor book. This meant that the top two anchors comprising of seven entities were allotted 23,05,548 equity shares or 29.15% of the anchor book.

Domestic mutual funds were allotted 5,00,424 shares or 6.33% of the anchor book. This was to two mutual funds with Sundaram being allotted 4.51% of the anchor book and HDFC being allotted 1.82% of the anchor book. Very clearly it appears that domestic mutual funds who are flush with funds have by and large chosen to give this issue the miss. Was it the valuations which kept them away? Not sure, but the India consumption story is intact and issue after issue is getting received unless valuation stops funds.

In conclusion, investors have turned much smarter than what merchant bankers and Private Equity Investors would expect. In this issue the fact that in under three months, the asking price has increased 2.3 times has not gone down well with institutional investors and the same has reflected even in the public subscription. Hope people who matter understand.

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