Mainland China owner's IPO over-subscribed

Speciality IPO, launched by the owners of popular fine dining brand Mainland China, got over subscribed on the exchanges today. According to data available on the NSE, it was subscribed 1.44 times on the final day. Maximum bids for the issue were seen in the range of Rs 146-150 a share as against price band of Rs 146-155.

The issue received bids for more than 1.44 crore equity shares as against issue size of 99.78 lakh shares (excluding anchor book).

Speciality has a total of 69 restaurants under brands like ‘Mainland China’, ‘Oh! Calcutta’, ‘Sigree’, ‘Machaan’ and 13 confectionery stores called ‘Sweet Bengal’ and offered 117.4 lakh shares via issue and aims to raise Rs 171.4 crore at lower end of price band and Rs 181.96 crore at higher band.

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The IPO had already received commitment of Rs 26.41 crore from five anchor investors, which are Morgan Stanley Mutual Fund, International Opportunities Funds-India Equity, SBI Magnum Global Fund, Reliance Equity Opportunities Fund and HSBC India Alpha (Mauritius).

It plans to use funds for development of new corporate restaurants (with an outlay of Rs 144.685 crore); development of a food plaza (with cost of Rs 15.1 crore); and repayment of a term loan facility (with Rs 10.433 crore).

The promoters Anjan Chatterjee and Suchhanda Chatterjee will reduce their stake in the company to 60.69 percent post issue.