PE-backed Mango Sip maker Manpasand Beverages’ IPO oversubscribed 40%

The initial public offer (IPO) of Vadodara-based fruit drinks maker and marketer Manpasand Beverages Pvt Ltd was fully covered and oversubscribed 40 per cent on the final day of the issue on Friday.

Manpasand Beverages, which is the eighth company to launch an IPO this year, had offered 7.58 million shares (outside the anchor allotment) in the issue at a price band of Rs 290-320 per share.

Data compiled by stock exchanges show that the issue reserved for qualified institutional buyers (QIB) was covered two times while retail investors portion was oversubscribed 16 per cent. HNIs & corporates, however, cold shouldered the issue and their portion was not fully covered with just under 38 per cent subscription.

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 IPO was covered around 36 per cent as of day 2 with retail and institutional investors leading the show.

Earlier, the firm raised Rs 180 crore (around $28 million) from a bunch of domestic and foreign investors who came in 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.

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