UFO Moviez $95M IPO subscribed 2x

Digital cinema solutions firm UFO Moviez India Ltd's public issue saw bids for twice the number of shares it had floated at the close of the issue on Thursday, April 30.

The QIB portion of the issue was subscribed 4.5x while the shares reserved for both retail investors and HNIs & corporates was just fully covered.

The IPO had got off to a slow start and was covered just 30 per cent at the end of second day.

The issue saw both its private equity backers—3i and Providence— besides promoters selling shares.

Providence, which invested in the company in 2011, is the single-largest shareholder, while 3i, which backed UFO Moviez in 2007, is the second-largest equity holder in the firm. While Providence is part exiting, it is not yet clear how much stake is 3i paring in the IPO.

The issue comprised 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 had opened its IPO with a price band of Rs 615-625 a share, which allows 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 had later cut this by a fifth to Rs 600 crore.

Axis Capital and Citigroup were the bankers to the IPO.

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