The issue of Wonderla Holidays Limited which had tapped the capital markets with its IPO for 1.45 cr shares was oversubscribed. It received excellent responsefrom all the segments. The issue price band was Rs 115-125. The company had allotted 21.75 lac shares to three entities as part of the anchor allocation. Questions were asked as to why not a single FII did not subscribe to the anchor portion.
The issue was oversubscribed in all categories and received excellent response.
The details of subscription are given below:-
| Category | Shares Offered | Shares Subcribed | Times |
| QIB’s | 5075000 | 84827400 | 16.71 |
| HNI’s | 2175000 | 345910200 | 159.04 |
| Retail | 5075000 | 38340400 | 7.56 |
| Total | 12325000 | 469078000 | 38.06 |
The total number of applications received was 1.89 lacs. The retail category would be allotted the minimum lot of 100 shares by lottery and it is expected that 4 out 15 applicants would get the minimum 100 shares. In the case of HNI’s firm allotment of 100 shares would be for a person who has applied for 16,000 shares or made an application for Rs 20 lacs. The cost of funding for HNI’s is roughly Rs 22 per share based on a rate of interest of 8% and interest being charged for 8 days.
The premium being quoted on the share is about Rs 34-36 which means a successful retail applicant would make Rs 3500 on an investment of Rs 12,500.
The key question being asked after the successful launch of this IPO is whether capital markets have turned around? The answer is no and this issue should be treated as a one-off. For the revival there have to be at least 3-4 issues where applicants make money before any revival can be signalled.
Great start and excellent response.
