Whalesbook
Fujiyama Power Systems Ltd's ₹828-crore Initial Public Offering (IPO) fully subscribed on its final day, with Qualified Institutional Buyers (QIBs) leading the demand. The overall subscription stood at 1.49 times by 2 pm on Day 3. The IPO includes a fresh issue of ₹600 crore and an offer for sale of ₹228 crore, with a price band of ₹216–₹228 per share. Funds will support a new manufacturing facility, debt reduction, and general corporate purposes. The company manufactures solar systems and power electronics.
The Initial Public Offering (IPO) of Fujiyama Power Systems Ltd, valued at ₹828 crore, has successfully achieved full subscription on its final bidding day. The subscription momentum was primarily driven by robust demand from institutional investors. By the afternoon of the third day, the IPO was subscribed 1.49 times overall.
Qualified Institutional Buyers (QIBs) showed significant interest, bidding 4.03 times their allocated portion. However, interest from Retail Individual Investors (RIIs) was lower, with subscriptions at 0.58 times, and Non-Institutional Investors (NIIs) subscribed 0.31 times. Employees also participated, with their quota seeing 1.18 times subscription.
The public issue comprises two parts: a fresh share sale of approximately ₹600 crore to fund growth initiatives, and an offer for sale (OFS) of ₹228 crore by existing shareholders, allowing them to divest some of their holdings.
The price band for the IPO shares has been set between ₹216 and ₹228 per share. Investors could bid for a minimum lot size of 65 shares.
Prior to the IPO opening, Fujiyama Power Systems successfully raised ₹247 crore from anchor investors, indicating strong early confidence from large institutional players.
Based in Greater Noida, Fujiyama Power Systems specializes in manufacturing rooftop solar systems and various power-electronics products, including on-grid and off-grid solar systems, inverters, panels, and batteries.
This news is moderately impactful for the Indian stock market as successful IPO subscriptions often generate investor interest in the renewable energy and manufacturing sectors, potentially influencing related stocks and overall market sentiment towards new listings. Rating: 6/10
IPO (Initial Public Offering): The process by which a private company first sells its shares to the public, becoming a publicly traded entity.
Subscription: The extent to which an IPO or other securities offering is oversubscribed or undersubscribed, indicating demand from investors.
Qualified Institutional Buyers (QIBs): Large institutional investors like mutual funds, foreign institutional investors, pension funds, and banks that are eligible to invest in IPOs.
Retail Individual Investors (RIIs): Individual investors who apply for shares in an IPO up to a certain value limit (typically ₹2 lakh in India).
Non-Institutional Investors (NIIs): Investors who are not QIBs or RIIs, often high-net-worth individuals or corporate bodies, who invest larger sums.
Offer for Sale (OFS): A process where existing shareholders sell their shares to new investors, rather than the company issuing new shares.
Anchor Investors: A select group of institutional investors who commit to buying shares before the IPO opens, providing stability and confidence to the issue.
Price Band: A range within which the IPO shares are offered to the public, determined by the company and its advisors.
Lot Size: The minimum number of shares an investor can apply for in an IPO.
