Manpasand Beverages IPO subscribed 1.4 times

The maker of the Mango Sip drink got a total of 10.533 million bids

The Rs 400-crore initial public offering (IPO) of equity in Manpasand Beverages has received 1.4 times the subscription, thanks to strong demand from institutional investors.

The 7.6 million shares on offer of Gujarat-based Manpasand, maker of the Mango Sip drink, got a total of 10.533 million bids. The bulk of these was in the qualified institutional buyer category, subscribed twofold. The retail category was subscribed 1.1 times, while the segment meant for wealthy individuals remained under-subscribed at 0.4 times.

Manpasand had priced its IPO between Rs 290 and Rs 320 a share. The fruit drinks company plans to use nearly half its IPO proceeds to set up a new manufacturing facility in Haryana and modernise the existing ones at Vadodara and Varanasi. About Rs 100 crore is to go for repayment of debt.

The IPO demand was muted due to high valuations, said analysts. They say it was valued at 35-38 times the one-year forward price-to- earnings ratio. Manpasand had raised Rs 180 crore from anchor investors, which included Goldman Sachs, Birla Sun Life Insurance, ICICI Prudential MF and Morgan Stanley.