Investors responded overwhelmingly to the three-day bidding window for the kids’ apparel firm Purple United Sales Ltd.’s IPO. With bids for almost 27.73 crore shares against the 17.32 lakh shares on offer, the Rs 32.81-crore SME offering was booked more than 160 times.
Non-Institutional Investors (NIIs), who subscribed their quota more than 270 times, drove the high demand for the NSE SME IPO. In contrast to the 3.71 lakh shares that were up for grabs, the NIIs bid for more than 10 crore shares.
In the Purple United Sales IPO, bids for over 13.44 crore shares were placed, and the retail segment was subscribed for more than 155.2 times. The business had 8,66,000 shares set aside for individual investors.
There was the least amount of interest for the public issue’s allocation to qualified institutional buyers. With offers for more than 4.27 crore shares exceeding the allotment of 4,95,000 shares, the offering was booked 86.3 times in the QIBs category.
Day 3 Subscription Updates
Purple United Sales IPO
Retail: 155.29x
HNI: 269.70x
QIB: 86.30x
Total: 160.08x
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IPO size and structure
The goal of Purple United Sales Ltd’s book-built IPO was to raise Rs 32.81 crore by issuing 26.04 lakh new shares. There was no offer-for-sale (OFS) component to the IPO.
Prior to the public offering subscription window opening, the business received Rs 9.34 crore from anchor investors.
Price band and minimum bid
At a face value of Rs 10 per share, the IPO price range was established between Rs 121 and Rs 126. A minimum lot size of 1,000 shares would have allowed retail investors to bid in the offer, requiring an investment of Rs 1,26,000 per application.
Listing and subscription dates
On December 18, it is suggested that the company’s shares be listed on Emerge, the NSE SME platform.
Purple United Sales is anticipated to conclude the share allocation status on December 16 after the bidding window closes on December 13. Following this, shares will be credited to the successful bidders’ Demat accounts and reimbursements for non-allottees will begin.
Utilisation of IPO proceedings
In its red herring prospectus, Purple United Sales stated that it will finance the opening of new outlets using the net revenues from the IPO. A part of the cash will be utilised for general business operations and working capital needs.
The business plans to open additional outlets using Rs 5.35 crore of the IPO revenues.
