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Shankara Building’s IPO subscribed 41 times on final day

24 March, 2017

Fairwinds Private Equity-backed Shankara Buildings Products Ltd received huge investor turnout on the final day of its initial public offering (IPO) on Friday.

The IPO, which comprised 5.3 million shares, received bids for 217.21 million shares, or 41.02 times, for roughly Rs 10,000 crore ($1.52 billion), stock-exchange data showed.

The portion set aside for institutional buyers was subscribed 51.62 times, while the retail investors’ book was subscribed 13.63 times. Non-institutional investors, such as corporate houses and wealthy individuals, was covered 90.67 times.

D-Mart’s IPO, last week, was the most successful offering in India, since Bengaluru-based business service provider Quess Corp Ltd’s IPO, which was subscribed 144.5 times. BSE Ltd’s public offering was yet another hit with investors and was oversubscribed 50 times.

Shankara’s IPO was fully covered on the second day of the public issue on Thursday led by retail investors.

On Wednesday, the IPO had crossed the half way mark.

Bengaluru-headquartered Shankara had raised Rs 103.50 crore ($15.79 million) through sale of shares via anchor allotment, three days prior to its IPO.

Shankara, which was formerly known as Shankara Infrastructure Materials Ltd, allotted 2.25 million shares to 16 institutional investors at Rs 460 per share, stock exchange filing showed.

It was seeking a valuation of Rs 1,050 crore ($160 million) through the IPO.

The IPO comprises a fresh issue of shares worth Rs 50 crore besides an offer for sale of nearly 1 million shares by managing director Sukumar Srinivas and 5.7 million shares by existing PE investor Fairwinds.

The Rs 354.4 crore-IPO, which will result in a 33.7% stake dilution, will close on 24 March. The public offering would mark the third liquidity event for Fairwinds, which is currently managing the PE fund raised under Reliance Equity Advisors, according to VCCEdge, the data research platform of News Corp VCCircle.

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Shankara Building’s IPO subscribed 41 times on final day

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