Issue subscribed 47.62 times
ARSS Infrastructure Projects Limited which had opened its IPO on Monday the 8th of February and closed today, the 11th of December 2009 received unprecedented support. The issue was well supported in all categories and received excellent response. This issue has beaten all records for oversubscription since the IPO season began sometime in July /August 2009. The previous best was from Infinite Computer Solutions Limited which was subscribed 43.22 times.
What is really heartening to note is that ARSS has been subscribed by a higher ratio in each of the three categories in which shares were offered.
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 1507317 | 74377365 | 49.3442 |
| NII | 251219 | 31283985 | 124.5287 |
| Retail | 753659 | 13979415 | 18.5487 |
| Overall | 2512195 | 119640765 | 47.62 |
The issue price band was Rs 410-450. The company has raised against its issue size of Rs 103 crs, bids for Rs 4900 crs. This clearly means that if issues are reasonably priced and offer value to investors, there is no shortage of liquidity. Pricing is the key issue and promoters and merchant bankers must realise this.
The cost of leveraged investors in the HNI category which saw an over-subscription of 124 times means that each share would have an interest component of Rs 214. This means that the share must trade higher than Rs 675 for the HNI to break even. This is a tall order by all means.
Let us see what the listing is like.
