Theme parks operator Adlabs Entertainment Ltd made a modest stock market debut on Monday listing below the issue price but later saw some buying buoy the share price and ended the first day with a marginal gain on the issue price.
Its share price opened at Rs 162.2 each, at a discount of around 10 per cent to the issue price of Rs 180 per share. It hit an intra-day high of Rs 199 a share and a low of Rs 156.4 a unit before closing at Rs 191.25 a share on debut on the BSE in a strong Mumbai market.
This comes after the PE-backed firm saw poor initial response to the public issue and had to cut the issue price band to Rs 180-215 a share from Rs 221-230 a share. It had also extended the issue closure period to see through the IPO.
Manmohan Shetty-promoted Adlabs Entertainment's issue was covered 1.1x or saw applications for shares which was just marginally more than the total that the firm had offered to sell in the issue.
At the end of the IPO, institutional investors’ portion was covered 1.17x while retail investors bid for 1.37x the number of shares reserved for them. HNIs and corporate investors did not find the issue attractive and they bid for just under half of the shares allocated for them.
The firm had offered 17.6 million shares to the public after the anchor allotment portion where it raised Rs 60 crore (just under $10 million) from a hedge fund under Edelweiss, besides a string of mutual funds under Axis, L&T Finance, HDFC AMC and a fund under Daiwa. The anchor investors had picked the shares at the lower end of the Rs 221-230 a share price band of the IPO.
The overall issue, including the anchor allotment portion, comprises 20.03 million shares of which around a tenth is through an offer for sale by the promoters.
Adlabs Entertainment, the firm behind theme park Adlabs Imagica, is backed by ICICI Venture and Jacob Ballas. At the end of first day of trading Jacob Ballas is sitting on a marginal unrealised gain of a little over 2 per cent while ICICI Venture has an unrealised upside of over 38 per cent, as per VCCircle estimates.
ICICI Venture had invested in the firm in mid-2013 while Jacob Ballas came in as pre-IPO investor late last year.
(Edited by Joby Puthuparampil Johnson)