UFO Moviez Limited (UFO) which had tapped the markets with an offer for sale of Rs 600 crs in a price band of Rs 615-625 was subscribed. The company had earlier allotted 28,80,000 shares at the top end of the band to Anchor Investors and there was a lot of buzz in the grey market about this company. The roadshow was a great hit and from that day till the issue actually closed there was high drama involving grey market premium.
What happened and why are two questions which remain unanswered even though the issue closed on Friday the 30th April. To give a fillip to this issue VRL Logistics had a superb listing on Friday itself which in normal circumstances would have added substantially to subscription. However this was not so and the issue received adequate response to be oversubscribed but the enthusiasm from the HNI and retail sections was missing.
| Bucket Size | Shares Applied for | Times oversubscribed | |
| QIB | 1951219 | 8761944 | 4.49 |
| HNI | 1463415 | 1705344 | 1.17 |
| Retail | 3414635 | 3494496 | 1.02 |
| Total | 6829269 | 13961784 | 2.04 |
From the above table we can see that the overall issue was subscribed 2.04 times but if demand is adjusted to include the subscription from the anchor book which is presumed to be at 28.80 lacs the book is overall subscribed 1.73 times.
Let’s hope the mystery of “unidentified flying objects” is resolved before the shares begin trading.
