Edelweiss-Backed EAAA India Alternatives Sets ₹1,200 Crore IPO Price Band

EAAA India Alternatives Ltd has set its initial public offering price band at ₹1,585 to ₹1,665 per share to raise ₹1,200 crore. The public issue opens for subscription on October 26 and closes on October 28, following an approval from the company's IPO Committee on October 20. Anchor investors will bid a few days earlier on October 23. At the upper end of the price band, the company holds an implied market value of ₹10,765 crore, while the lower end values the firm at ₹10,248 crore. Investors can bid for a minimum of nine equity shares and in multiples of nine after that.

Offer Structure

The public offering is entirely an offer for sale by the Edelweiss Group, meaning no fresh shares are being issued and the company will not receive any proceeds from the sale. The issue size was earlier reduced from the ₹1,500 crore proposed in the draft prospectus filed with the Securities and Exchange Board of India in January. Out of the total offer, 50% is reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors. Axis Capital, Jefferies India, Motilal Oswal, and Nuvama Wealth are the book-running lead managers, and MUFG Intime India is the registrar. The company shares are expected to list on the BSE and the National Stock Exchange on November 2.

Context

Initial public offerings allow private companies to list their shares on public stock exchanges for general trading. In an offer for sale, existing promoters or early backers sell their existing shares to the public rather than the company raising brand new funds for its own business operations.