Rossari Biotech Limited which had tapped the capital markets with its simultaneous fresh issue of Rs 50 crs and an offer for sale of 1.05 cr shares was oversubscribed a whopping 79.37 times. The price band of the issue was Rs 423-425 and was open from Monday the 13th of July to Wednesday the 15th of July. Earlier the company had allotted 35.02 lac shares to 15 anchor investors comprising of 29 entities. The highest allocation of 3,29,420 shares was made to three individual investors which constituted 9.4% of the anchor allocation was made to Ashoka India, Nalanda Fund and Nippon India. Besides the above, three mutual funds HDFC, ICICI and SBI were also allotted the similar 9.4% in various schemes.

The issue was subscribed 85.26 times by QIB’s, 239.83 times by HNI’s and 7.23 times by Retail investors. There were 6,16,155 applications and on the basis of lots the Retail portion was subscribed 5.28 times.

The leveraged investor cost of funding at 7% would be Rs 136.83 while at 6.5% would be Rs 127.06. This effectively means that the base level for the share on listing day becomes Rs 552 – 562 for leveraged HNI depending on the rate of interest he has borrowed at. This effectively means a premium of 30-32% on the issue price of Rs 425. Anything less than this would bring pressure on the share as those investors who have borrowed/leveraged and applied for 17.51 lac shares out of a total issue of 116.76 lac shares would determine the movement of the share.

The full details of the subscription are given below: –

Yes Bank Limited which is tapping the capital markets with it follow on public offer to raise Rs 15,000 crs in a price band of Rs 12-13 completed allocation to anchor investors. The company allotted 341,53,84,614 equity shares (341.53 cr) to 14 anchor investors. The largest allotment is to Bay Tree India Holdings I LLC who was allotted 187.50 cr shares or 54.90% of the total anchor book. The other investors include HDFC Life, Amansa Holdings and Elara India opportunities fund who were allotted over 9% each. There is no allotment to SBI or domestic mutual funds.

Considering the fact that Tilden Park a marquee investor from the USA has invested a large chunk through Bay Tree and this becomes their first investment in India, it would be fair to assume that their investment is a long term investment and they would play an active role in the company going forward. Secondly it would also be fair to assume that the issue price band of Rs 12-13 would see the company allotting shares to all investors at Rs 12.

The issued capital of Yes Bank is 1255.047 cr shares of Rs 2 each. The fresh issue would double the equity to 2505.047 cr shares. SBI holds 605 cr shares in Yes Bank’s equity and has a commitment to continue to hold a minimum of 26% over the next three years. Post the dilution through FPO, SBI would have to hold a minimum of 651.31 cr shares or a fresh investment of 46.31 cr shares. It has committed to invest RS 1,750 crs in the FPO. The size of the FPO in the QIB category balance of the anchor allotment is Rs 3,000 crs. Considering SBI, this means there is a total of Rs 1,250 crs available or the QIB would be oversubscribed.

There is certainly going to eb interesting times for this issuer going forward.

The full list of anchor allotment is given below: –

Rossari Biotech Limited which is tapping the capital markets with its simultaneous fresh issue of Rs 50 crs and an offer for sale of 1.05 cr shares completed its allocation to anchor investors. The company allotted 35.02 lac shares to 15 anchor investors comprising of 29 entities. The highest allocation of 3,29,420 shares was made to three individual investors which constituted 9.4% of the anchor allocation was made to Ashoka India, Nalanda Fund and Nippon India. Besides the above, three mutual funds HDFC, ICICI and SBI were also allotted the similar 9.4% in various schemes. The price band is Rs 423-425. The issue opens on Monday the 13th of July and closes on Wednesday the 15th of July.

The PE multiple of the issue is steep at 31.52 at the lower end of the band and 31.67 at the top end of the band. The company had earned an EPS of Rs 13.23 on a diluted basis for the year ended March 2020.The company has on Friday allotted 35.02 lac shares to 15 anchor investors comprising of 29 entities. While it has a good future and the capex being undertaken would bear fruit in the financial year 2021-2022, it looks expensive currently but could be invested in only if one is willing to wait for two years. Alternatively, one could invest when the markets cool off.

The full list of anchor investors with their allotment is given below: –