The simultaneous offer for sale and fresh issue from Prabhat Dairy managed to close with two concessions. The first was a price reduction and issue subscription extension from Rs 140-147 to Rs 115-126. The second was a reduction in the offer for sale component which was 1.47 cr shares. The final tally considering the entire issue saw a subscription for 317.39 lac shares against 412.08 lacs or 77%.

The merchant bankers would do well if they in consultation with the promoter and the selling shareholders do not commit the mistake of pricing the share at the top end of the band. They must understand that the issue did not garner the requisite support and the same may be attributed to a host of reasons. The fact remains that the issue remained under subscribed and therefore there is no moral right or justification of taking the top end of the price band as the issue price.

Prabhat Dairy was one of five back to back issues in the primary market which opened for subscription in the last two weeks when markets were on the receiving end.

The issue was subscribed 0.77 times with just the HNI portion oversubscribed at 1.42 times.

The full subscription details are given below: –