Summary of this article
Fujiyama Power Systems made a weak debut on November 20, listing at a discount to its issue price
The stock opened at Rs 220 on the NSE, down 3.51 per cent, and at Rs 218.40 on the BSE, a 4.21 per cent discount
Fujiyama Power Systems’ share price made a weak debut on the D-Street on November 20, listing at a discount to the issue price. On the NSE, Fujiyama shares opened at Rs 220 apiece, down 3.51 per cent, and on the BSE, the stock opened at Rs 218.40 per share, down 4.21 per cent from the issue price.
Ahead of the listing, Fujiyama shares traded at a grey market premium (GMP) of Rs 0.5, or 0.22 per cent, already indicating weak listing prospects.
Fujiyama Power Systems Ltd, founded in 2017, operates in the rooftop solar space and offers on-grid, off-grid and hybrid solar systems. The company's product portfolio includes solar PCUs, different types of inverters, solar panels, battery chargers, lithium-ion and tubular batteries, UPS systems and solar management units.
Fujiyama Power Systems IPO Details
The solar company offered 36.31 million shares with a price band of Rs 216-228 per share, and raised Rs 828 crore through the initial public offering (IPO). The IPO consisted of 26.31 million fresh equities worth Rs 600 crore, and 10 million offer-for-sale shares worth Rs 228 crore.
Motilal Oswal Investment Advisors and SBI Capital Markets acted as the book-running lead managers to the issue, while MUFG Intime India handled the registrar duties.
Fujiyama plans to use the IPO proceeds to partly fund the construction of its new manufacturing facility in Ratlam, Madhya Pradesh, for which it has set aside Rs 180 crore. It will use another Rs 275 crore to repay or prepay a portion of its existing borrowings. The remaining amount will be set aside for general corporate needs.
Fujiyama Power Systems IPO Subscription Details
Fujiyama Power Systems IPO was overall subscribed by 2.14 times on the shares on offer. The issue drew bids for 56.32 million shares against 26.34 million on offer.
The qualified institutional buyers’ (QIB) portion was subscribed 5.15 times, the non-institutional investor (NII) category saw a weaker turnout at 0.88 times, while the retail investors' portion was fully subscribed.
The employees of the company which received the shares at a discount of Rs 52 per share or 22.80 per cent to the upper band of the issue price, booked the issue 1.47 times their reserved quota.
Fujiyama Power Systems IPO Anchor Investors
Ahead of its IPO, Fujiyama raised Rs 246.90 crore from institutional investors in the anchor round. The company allocated a total of 10.83 million shares at an allocation price of Rs 228 per share.
Domestic mutual funds accounted for 5.67 million shares, or 52.33 per cent of the total anchor book. Notable participants included Nippon India Small Cap Fund and Nippon India Power & Infra Fund, which took up 30 per cent and 10.50 per cent of the anchor allocation, investing Rs 74.07 crore and Rs 25.92 crore, respectively.
