The IPO of Gujarat Pipavav Port was overwhelmingly subscribed by HNI’s and retail. The HNI portion was subscribed 85.7 times while the retail portion was subscribed 9.15 times. The overall issue was subscribed 19.94 times. The issue had opened on Monday the 23rd of August and closed on Wednesday the 25th of August for QIB’s and yesterday for all other categories of investors other than QIB’s. The price band was Rs 42-48 and the issue was to raise Rs 510 crs including an employee reservation of Rs 10 crs. There was an offer for sale of 1.17 cr shares which would entail a value of Rs 56.19 crs at the top end of the band.

The response from HNI’s and retail has been tremendous and the support demonstrates that pricing is a key for success. The investing public is now fully aware of the company, its present performance and likely performance going forward. The mantra for success is that there should be money on the table from day one.

The HNI oversubscription of 85.70 times means an interest cost of just about Rs 9 per share. This interest cost is based on the assumption of 8% interest for 10 days. This means that the retail investor has his insurance in place and he is most likely to get a gain of anywhere between Rs 9 and Rs 12 on listing day. There would be some withdrawals etc and that would alter things marginally.

Retail investors are likely to get around 228 to 230 shares for people who have applied for the maximum of 2080 shares.

Details of the subscription are as follows: –