Shiprocket IPO fully subscribed, GMP jumps to 35%
What's the story
Shiprocket's initial public offering (IPO) has been fully subscribed on the second day of bidding, according to data from the National Stock Exchange (NSE). The issue received bids for 12,77,71,798 equity shares against the 9,44,36,030 shares on offer. Retail investors led the subscription activity with their reserved portion subscribed by 4.57 times.
Market performance
Shares commanding a strong premium in the gray market
Ahead of the expected listing, Shiprocket's shares were commanding a strong premium in the unofficial gray market.
According to InvestorGain, the gray market premium (GMP) stood at 35% on Thursday.
At the upper end of the IPO price band of ₹97, a 35% GMP translates into a premium of about ₹34 per share.
This translates to a potential listing price of around ₹131 per share.
IPO composition
Looking at Shiprocket's IPO
The Shiprocket IPO, which opened for subscription on August 12 and will close on August 14, has been priced at ₹92-97 per share.
The company aims to raise ₹1,617.5 crore at the upper end of this price band.
The issue consists of a fresh issue of shares worth ₹885.5 crore and an offer for sale (OFS) worth ₹732 crore by existing shareholders.
Fund allocation
Here are the company's plans with IPO proceeds
Shiprocket plans to use ₹365.6 crore from the net proceeds of the fresh issue for marketing initiatives and investment in technology infrastructure and capabilities.
Another ₹210 crore has been earmarked for repayment or prepayment of borrowings.
The remaining proceeds are proposed to be used for unidentified acquisitions and general corporate purposes, according to the company's IPO documents.