DQ Entertainment (International) Limited which had opened its IPO this Monday and the same closed yesterday received unprecedented support. The QIB portion was subscribed almost 94 times while the HNI category was subscribed a record, unheard of 272.88 times. I do not recall any issue ever receiving such a response since the time book building has started.
| Category | Shares offered | Shares Bid | Subscription Ratio |
| QIB | 6605340 | 619980320 | 93.8605 |
| NII | 1572700 | 429159680 | 272.8808 |
| Retail | 4718100 | 91752160 | 19.4468 |
| Employee | 321011 | 116720 | 0.3636 |
| TOTAL | 13217151 | 1141008880 | 86.33 |
The price band was Rs 75-80 and though it appeared expensive based on the current performance, the company had enough in it to promise a lot going forward. Looking at the response and the type of oversubscription, listing gains becomes a certainty. The bad part of would however be that the allotment in the retail category would also be by way of lottery.
The cost of funding in the NII or HNI category is the same as the price band which effectively means that the share has to list at a price of Rs 150 or higher if an HNI has to break even. It sure is a tall order and I believe that there would be some withdrawals in this category.
Here’s wishing all the best to the management of DQ who now have a greater responsibility looking to the overwhelming and unprecedented support they have received.
