The IPO of Fujiyama Power Systems Ltd is in its final day of bidding, with investors closely monitoring subscription trends ahead of the closing on November 17. As of 10:32 am on the third day, the public issue had a 45% subscription rate. The QIB category led with 81% subscription, while retail investors subscribed 38% and non-institutional investors 16%.
The varying levels of subscription indicate a higher confidence level among institutional investors compared to retail and HNI bidders. Priced in the range of Rs 216 to Rs 228 per share, the IPO aims to raise Rs 828 crore, including a fresh issue of Rs 600 crore and an offer for sale worth Rs 228 crore by promoters Yogesh Dua and Pawan Kumar Garg. Each lot consists of 65 shares.
Fujiyama Power Systems, headquartered in Greater Noida, is a prominent provider of integrated rooftop solar solutions in India under the brands Fujiyama Solar and UTL Solar. The company plans to utilize the funds for a new manufacturing facility in Ratlam, debt repayment, and general corporate needs.
Master Capital Services Ltd. suggests a positive industry outlook for companies like Fujiyama due to the growing rooftop solar market in India. The company’s strong product portfolio, R&D capabilities, and brand recognition are seen as advantageous in the shift towards rooftop solar adoption.
The IPO allotment will be finalized on November 18, with shares set to list on the NSE and BSE on November 20. Investors can check their allotment status through various platforms post-allotment announcement.
The grey market premium for the IPO is currently at zero, aligning with the upper price band at Rs 228 per share. This suggests a neutral stance in the market regarding potential listing gains. The final day’s subscription performance will be crucial in shaping market sentiment leading up to the listing later this week.