SP Apparels IPO sails through, subscribed 2.66 times


The initial public offer (IPO) of SP Apparels has sailed through with the offer being subscribed 2.66 times on the closing day. The issue received bids for about 1.74 crore shares on Thursday evening, NSE data showed. The company is offering 65.57 lakh shares in the IPO.

On a cumulative basis (BSE and NSE), the retail portion was subscribed 1.89 times. The portion allotted for retail individual investors received bids for about 18.22 lakh shares on the NSE and around 43 lakh shares on theBSE.The retail portion was subscribed 1.33 times on the BSE. The company offered about 32.34 lakh shares for retail investors and it received bids for 61.2 lakh shares.

SP Apparels, which is one of the largest knitwear exporters in Tirupur, fixed a price band of Rs 258 -Rs 268 per share for the IPO, which opened on Tuesday. The company is seeking to raise Rs 215 crore from the issue at the upper end of the price band. The QIB (qualified institutional buyers) portion has been subscribed 2.21 times on a cumulative basis.

Out of the nearly 19.4 lakh shares being offered to QIBs, the company received bids for about 30.17 lakh shares on BSE and 12.66 lakh shares on the NSE. The non-institutional investors segment, which includes corporates and high net-worth individuals (HNIs), has been subscribed about 5.1 times.

While 35% of the offer has been reserved for retail investors, 50% of the issue has been allocated to QIBs. The remaining 15% is reserved for non-institutional investors. The company raised nearly Rs 72 crore from seven anchor investors on Monday by allocating about 26.77 lakh shares at a price of Rs 268 per share.

The anchor investors include DSP Blackrock Micro Cap Fund, Goldman Sachs India Fund, Birla Sun Life Insurance Co and Morgan Stanley Mauritius Co. SP Apparels, which is promoted by P Sundararajan, had revenues of Rs 537 crore and profits of around Rs 35 crore in 2015-16. The IPO is managed by Motilal Oswal Investment Advisors and Centrum Capital. The shares of the company would be listed on the BSE and NSE.