PE-backed UFO Moviez IPO subscribed 30% as of day 2

Digital cinema solutions firm UFO Moviez India Ltd's public issue is yet to reach one-third mark with its IPO seeing applications for 30 per cent of the issue at the end of the second day of the issue.

With one day to go, it has a long way to go to sail through even as it is not unusual for IPOs to get full subscription on the last day.

While the QIB portion of the issue was subscribed 46 per cent, retail investors’ portion saw 26 per cent subscription and HNIs and corporates bid for 17 per cent of the shares reserved for them.

The bidding for shares in the IPO will close on Thursday (April 30).

The issue would see both its private equity backers—3i and Providence— besides promoters sell shares.

The issue comprises around 35 per cent of the capital valuing the firm at a little over Rs 1,700 crore.

UFO Moviez is India’s largest digital cinema distribution network and in-cinema advertising platform (in terms of numbers of screens), according to CRISIL. It operates a satellite-based, digital cinema distribution network. It is co-promoted by Sanjay Gaekwad, Narendra Hete and Apollo International.

It had raised about Rs 180 crore (nearly $28.5 million) from a bunch of domestic and foreign investors that came as anchor investors.

The firm opened its IPO with a price band of Rs 615-625 a share, which would allow it to raise around Rs 420 crore (excluding anchor allotment).

When it had filed its documents last December, it had sought to raise up to Rs 750 crore through the offer-for-sale issue. It has now cut this by a fifth to Rs 600 crore.

(Edited by Joby Puthuparampil Johnson)

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