Ami Organics IPO records huge demand; QIBs come as face saver for Vijaya Diagnostic

Two initial public offerings (IPOs) had a contrasting picture on their last day with the share sale of Ami Organics seeing all-round bumper demand while Vijaya Diagnostic managing to sail through thanks to institutional investors.

The two issues were floated at a time where there is growing concern about the state of primary markets and the froth in valuations with some recent issues falling below their issue prices despite the secondary market indices hitting record highs.

Ami Organics

The Surat-based specialty chemical manufacturer Ami Organics saw its IPO covered 64.5 times, as per provisional data by the BSE and the NSE at the close of the issue period.

High-net-worth investors (HNIs) piled up big time while corporate investors and qualified institutional buyers (QIBs) also applied for several times the number of shares reserved for them.

Non-institutional investors, a segment that essentially captures demand from HNIs and corporates, bid for more than 154 times the number of shares reserved for them, with HNIs leading the show. QIBs applied for more than 86 times the shares allocated for them.

Retail investors were less wide-eyed but they also pitched in in enough numbers. The retail book was covered over 13 times.

The public issue size was Rs 566 crore, including 171 crore that came in via anchor allotment. The company raised Rs 200 crore through a fresh issue of shares and the rest of the money went to selling shareholders, essentially the promoters.

Intensive Fiscal Services, Ambit and Axis Capital are the book running lead managers to the issue.

Vijaya Diagnostic

Hyderabad-based pathology chain Vijaya Diagnostic Centre Ltd also saw oversubscription but only due to the push by QIBs. The issue by the private equity-backed company, which had attracted anchor investors including the sovereign wealth funds of Abu Dhabi and Kuwait, was covered 4.5 times.

The retail book was just about oversubscribed with 1.2 times demand while the non-institutional investors’ portion was covered 1.33 times.

The QIB portion was covered 13 times, saving the day for the company.

The public issue size, excluding the anchor book, was Rs 1,328 crore.

ICICI Securities, Edelweiss and Kotak Mahindra Capital are arranging the IPO.