Astron Paper Limited – Issue Subscribed 243 Times

The IPO from Astron Paper Limited was very well received and was subscribed 243 times. The company had tapped the capital markets with its fresh issue for 1.4 cr shares in a price band of Rs 45-50. The issue was subscribed an overall 243.29 times. QIB portion was subscribed 103.36 times, HNI portion 396.99 times and Retail portion was subscribed 77.93 times. There were over 11.25 lakh applications.
astron-paper-limited
The driving force behind huge subscriptions on the main board as well as the SME platform is the huge liquidity that is available in the markets. Funding has become so easy that issues get oversubscribed so many times that the cost of funding is unable to support the cost of interest. This causes HNI’s to lose money. Classic case has been Capacite Infra where the cost of funding was Rs 160 on an issue price of Rs 250. The issue has still not managed to cross the cost of funding.

Details of subscription in various buckets is given below: –

Astron Paper Subcription

Bucket Size Shares Applied for Times Oversubscribed
QIB 1330000 137463760 103.36
HNI 7315000 2903964840 396.99
Retail 4655000 362750360 77.93
Employee Quota 700000 1895040 2.71
Total 14000000 3406074000 243.29
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