The initial public offer (IPO) of Vadodara-based fruit drinks maker and marketer Manpasand Beverages Pvt Ltd was covered around 36 per cent as of day 2 with retail and institutional investors leading the show.
Although almost two-thirds of the issue is yet to find takers, it can take comfort from the fact that high net-worth individual investors typically tend to join the IPO bandwagon on the last day of issue.
Data compiled by stock exchanges show that the issue reserved for qualified institutional buyers (QIB) was covered 45 per cent while retail investors had bid for 56 per cent of the issue reserved for them. HNIs & corporates had subscribed to just under 5 per cent of their portion of the issue.
The company's IPO had got off to a slow start with just over 5 per cent of the issue covered at the end of the first day, almost all of it by retail investors. The issue is at a price band of Rs 290-320 per equity share.
It would close on June 26, 2015. Manpasand is the eighth company to launch an IPO this year.
Earlier, the firm raised Rs 180 crore (around $28 million) from a bunch of domestic and foreign investors who have come as anchor investors ahead of its IPO.
Manpasand Beverages manufactures mango juices and is known for its brand Mango Sip. It has a strong presence in tier II and rural markets in India and besides Mango Sip also sells products under the Manpasand ORS and Fruits Up brands.
The company received approval from the capital markets regulator Securities and Exchange Board of India (SEBI) for around Rs 400 crore ($65 million) public float in April this year.
Manpasand Beverages had raised Rs 45 crore three years ago from SAIF Partners and early last year pulled in Rs 45 crore more from the existing investor. In addition, it raised Rs 26.25 crore from Aditya Birla PE's Sunrise Fund, as part of the pre-IPO round.
SAIF Partners currently owns around 29.8 per cent while Aditya Birla PE holds 3 per cent stake.