Fineotex Chemical Limited which had tapped the capital market with its issue between the 23rd and 25th of February 2011 is to list on Friday the 11th of March. The issue was for 42,11,160 equity shares in a price band of Rs 60-72 and was subscribed 1.57 times.
This issue was unique in many ways and did not receive a single bid in the QIB category, was undersubscribed in the HNI category receiving a mere 22% subscription of the shares offered. The retail category was oversubscribed and received bids for 4.38 times the category. This resulted in an overall oversubscription of 1.57 times.
This company chose not to have any road shows for marketing its issue and was extremely overpriced. It would be interesting to see how the exit is given to investors whose applications were ‘managed’.
