The secondary offering from Narayana Hrudayalaya (NH) was oversubscribed 8.70 times. The company through a secondary offering in a price band of Rs 245-250 planned to raise a shade over Rs 600 crs through the offering. It had allotted 73.57 lac shares to 15 anchor investors comprising of 25 entities at the top end of the band of Rs 250.

The issue was well supported by QIB’s who subscribed their bucket 24.43 times while the HNI bucket was subscribed 3.62 times. The response from this segment comprising of the leveraged investor was poor as the grey market premium fell. The margin payable for borrowing and then applying remained high and hence the lacklustre response. Time and again I have been maintaining that by allowing this category to apply one time the whole issue rather than one time the bucket size is distortion of demand. This demand distortion is detrimental to the primary market and there are umpteen examples where good issues having received excellent response have become a cropper simply because the cost of leverage could not be sustained.

The retail portion was subscribed 1.89 times.

The detailed subscription is given in the table below: –