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FSN E-Commerce Ventures subscribes 4.86 times on day 2

The initial public offering of FSN E-Commerce Ventures Ltd, excluding the anchor book, was subscribed 4.86 times on Friday, the second of the three-day offering .

As of 5pm, the IPO received applications for 127.75 million shares against 26.28 million shares, stock exchange data showed. The institutional investor category was subscribed 4.77 times while the non institutional category comprising high net worth individuals was subscribed 418% or 4.18 times.

Retail investors, whose investments cannot exceed ₹2 lakh per individual, subscribed to 6.34 times of the 4.73 million shares on offer, data showed.

“The company have focused on capital efficiency and unit economics, while simultaneously building for scale and growth. Hence, looking after scale of operations, strong management team, profitable concern & high growth prospects in industry due o large underpenetration, we believe that company has created an industry itself”, said Hem Securities in a note to its investors.

Meanwhile, Fino Payments Bank subscribed 51% on the first day of the three-day offering that closes on 2 November.

The overall book, excluding the anchor allotment, was subscribed 0.51 times. As of 5pm, high net worth individuals drew 5% the shares reserved for the category. The institutional investor category yet to place bids.

Retail individual investors applied for 273% or 2.73 times the shares on offer, stock exchange data showed.

Fino Payment Bank is available at the upper end of the IPO price band at Price to Book Value of 29.29x based on its NAV of Rs. 19.70 as at the end of 1QFY22, demanding a market cap of Rs. 48,015 million. The RoNW for FY21 stands at 14.6%. With Pan India operational presence in over 90% of district the company has great opportunity to strengthen its business in coming years”, said Anand Rathi in a note to its investors.

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