The initial public offer (IPO) of SJS Enterprises was subscribed 1.59 times on the last day of subscription on Wednesday. The ₹800-crore IPO received bids for 1,67,97,537 shares against 1,05,46,140 shares on offer. The issue, with a price band of ₹531-542 a share, opened on November 1 and concluded on November 3.
The finalization of basis of share allotment has been done and the equity shares will be credited to bidders on November 12, 2021. The company’s shares are expected to list next week on November 15, 2021. As per market observers, SJS Enterprises shares are available at a premium of ₹38 in the grey market today after the share allotment announcement.
The category for Qualified Institutional Buyers (QIBs) received 1.42 times subscription, while that for non institutional investors 2.32 times and retail individual investors (RIIs) 1.38 times. SJS Enterprises had raised ₹240 crore from anchor investors.
“SJS’ revenues seems to be stagnant. The IPO which is a purely a OFS would see promoter’s stake going down significantly which is a matter of concern. At the upper band, issue looks priced on a higher side, leaving less for the investors on table. Listing may not be buzzing and issue may list at marginal premium of 10%,” said Abhay Doshi, founder, UnlistedArena.com
SJS Enterprises is a leading player in the Indian decorative aesthetics industry, offering a wide range of aesthetics products in the country. It is a “design-to-delivery” aesthetics solutions provider with the ability to design, develop and manufacture a diverse product portfolio. It caters to the requirements of the two-wheeler, passenger vehicle, commercial vehicle, consumer appliance, medical devices, farm equipment and sanitary ware industries.
Axis Capital Limited, Edelweiss Financial Services Limited and IIFL Securities were the managers to the offer.
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