Lovable Lingerie Limited which had tapped the capital markets with its IPO in a price band of Rs 195-205 was oversubscribed very handsomely. The issue had opened on Tuesday the 8th of March and closed on Thursday the 10th of March for QIB’s and yesterday the 11th of March for non QIB’s. Anchor investors were earlier allotted 6,82,500 shares at the top end of the band. The balance size of the issue was 38,67,500 equity shares. The issue would raise Rs 79.38 crs at the top end of the price band. The issue received excellent response from all quarters and was oversubscribed 35.21 times.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 1592500 | 34821210 | 21.87 |
| NII | 682500 | 68162130 | 99.87 |
| Retail | 1592500 | 33186540 | 20.84 |
| Overall | 3867500 | 23834700 | 35.21 |
The oversubscription in the QIB category would put pressure on the leveraged investor. If one were to assume an interest rate of 15% for 9 days, it would cost Rs 0.758 per time. The issue is oversubscribed 99.87 times or almost 100 times, which means that the cost of a leveraged investor in the HNI category would be Rs 75.80. The current grey market premium is around Rs 58 which means at this point the leveraged investor is a loser. Going forward we would see some withdrawals from the issue and for even a breakeven the grey market premium would have to rise.
It would be interesting to see how this share fares post listing and in the coming quarters.
