The initial public offer of Tata Technologies was subscribed 69.43 times as it attracted a record number of 73.58 applications beating the previous highest of 73.38 applications made for LIC’s initial offer.
The initial share sale received bids for 312.6 crore shares against 4.5 crore shares on offer.
In value terms, the bids submitted (at the upper end of the price band) was over Rs 1.5 lakh crore whereas the IPO size was only at Rs 3,042.5 crore. According to data available at Nuvama’s Finworld app.
It was the qualified institutional buyers (QIBs) which were the leaders as the portion reserved for this category was subscribed 203.41 times. On the other hand, the portion set for non-institutional investors saw 62.11 times subscription, while the quota for retail individual investors was subscribed 16.50 times.
The public issue which had a price band of Rs 475-500 per share, was entirely an offer for sale (OFS) from Tata Motors, Alpha TC Holdings and Tata Capital Growth Fund 1.
Market circles said the huge success of the IPO showed investors’ preference for quality companies with reasonable valuations.
The share is expected to list at a good premium — likely on December 5 — with trends from the grey market suggesting over 80 per cent mark-up to the IPO price.
According to the website “InvestorGain’’, the last GMP (grey market price) is Rs 418 which indicates that it could list at Rs 918. Apart from Tata Technologies, two other issues also witnessed good interest on the final day.
Gandhar Oil Refinery (India) received 64.07 times subscription. The Rs 500.69 crore initial public offering (IPO) got bid for 136.10 crore shares against 2.12 crore shares on offer.
Pen maker Flair Writing Industries saw its issue getting subscribed 46.68 times. The IPO received bids for 67.2 crore shares against 1.44 crore shares on offer.
Fedbank Financial Services was subscribed 2.20 times. The IPO received bids for 12.3 crore shares against 5.59 crore shares on offer.
Meanwhile, the Sensex and Nifty closed with modest losses for the second straight session on Friday. The Sensex declined 47.77 points to settle at 65970.04. The Nifty slipped 7.30 points to 19794.70.
