Fujiyama Power Systems is launching an Rs 838 crore IPO, open for subscription from November 13 to 17. The price band is set at Rs 216-228 per share. The public issue includes a Rs 600 crore fresh issue and a Rs 228 crore offer for sale.
India's IPO season continues to stay busy this November, with Fujiyama Power Systems Ltd joining the line-up of companies hitting the stock market. The power solutions manufacturer will open its Rs 838 crore IPO for subscription on November 13, and investors will have time till November 17 to apply.
The public issue includes both a fresh share issue and an offer for sale, with the company planning to use the proceeds to expand its manufacturing capacity, repay existing loans, and meet other corporate needs.
What's on Offer
The Rs 838 crore IPO is a book-built issue. Out of this, Rs 600 crore will come from a fresh issue of 2.63 crore shares, while another Rs 228 crore will be raised through an offer for sale (OFS) of 1 crore shares by existing shareholders.
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The price band for the issue has been set between Rs 216 and Rs 228 per share, and investors can bid for a minimum of 65 shares and in multiples thereafter.
Leading investment firms Motilal Oswal Investment Advisors and SBI Capital Markets are managing the issue, while MUFG is acting as the registrar.
Who Can Apply and How
As per SEBI's guidelines, the IPO will be divided among different categories of investors:
- Qualified Institutional Buyers (QIBs): Up to 50% of the total offer, with up to 60% of that portion possibly reserved for anchor investors.
- Non-Institutional Investors (NIIs): Up to 15% of the issue.
- Retail Investors: Up to 35% of the offer.
Retail investors can bid for shares worth up to Rs 2 lakh, while company employees can invest up to Rs 5 lakh. Employees may also receive a discount on their bids if their investment is up to Rs 2 lakh.
Important Dates to Note
If you're planning to apply, here are the tentative dates to keep in mind:
- IPO opens: November 13
- IPO closes: November 17
- Basis of allotment: November 18
- Refunds and credit to Demat accounts: November 19
- Listing on NSE and BSE: November 20
What Investors Should Watch
Market analysts say the IPO comes at a time when investor appetite for manufacturing and energy-related businesses is strong. However, the response will depend on how investors view the company's valuation and growth prospects in the short term.
