Credit Analysis and Research Limited (CARE) which had tapped the capital markets with an offer for sale of Rs 71.99 lac shares at a price band of Rs 700-750 and was subscribed handsomely. The issue had opened on Friday the 7th of December and closed on Tuesday the 11th of December. The issue was to raise Rs 540crs from the offer for sale.

The issue received excellent response and was subscribed 41 times with the best response coming from HNI’s. HNI’s subscribed to the offer 111 times while QIB’s subscribed almost 46 times. The retail category was subscribed 6.18 times. One must remember that allotment rules have been changed in the retail category and all applicants are first allotted the minimum lot before any surplus is allotted to other applicants. The total number of applications in this issue is about 3.3 lakhs which means that the average size per applicant is about 50 shares. The value of this application becomes Rs 37,500 against a normal average of Rs 1 lakh per application. The allotment to each successful applicant would be 20 shares and the ratio would be roughly 1 successful allotment for every 2.5-2.6 applicants. Yet another similar way of conveying the same would be 2 out of 5 applicants would get 20 shares and this would be irrespective of the size of the application. The issue would be priced at the upper end of the price band of Rs 750 and is likely to list around Christmas time.

Clearly the success of this issue indicates that if money is raised at reasonable prices there is appetite for fresh investment.

The details of the subscription level in various categories are given below: –