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.

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: –