Mission critical to see that QIB’s subscribe to 110.22 lac shares minimum

Adlabs Entertainment Limited (Adlabs) which had tapped the capital market with its IPO for 2,03,26,227 equity shares which had an offer for sale portion of 20 lac shares is fighting for survival on the last day of its extended offering. The company has a compulsory 75% QIB portion on account of inadequacy of profits. The anchor portion was upto 60% of the QIB book but 27,22,135 shares were allotted to anchors. The balance therefore in the QIB book remains as 15244670-2722135=12522535.

There is a provision in case of shortfall the offer for sale would be deducted and the new issue size would become 18326227. The QIB portion of this quantity minus the anchor would be 13744670-2722135=11022535 shares. Therefore the critical number to get for the company is QIB’s subscribing to 1.10 cr shares at the minimum. The fact that retail is subscribed makes little or no difference. At the end of Monday the figure reached was 66.76 lac shares which means that another 43.24 lac shares to go.

There has been progress made on Tuesday and the latest figure as of 11.30 am shows that the combined bidding on BSE and NSE in the QIB portion is now 68.98 lac shares. This means that the mission critical figure is now reduced to 41.24 lac shares.

In the greater interest of the capital market and the primary market in particular one hopes that such a mega issue sails through.