L&T Finance Holdings Limited which had tapped the capital markets with its IPO for raising Rs 1,245 crs in a price band of Rs 51-59 was fully subscribed. The issue received good response from all the different segments of the issue with retail subscribers being the most bullish on the IPO. The retail portion was subscribed 9.61 times and the overall issue was subscribed 5.34 times.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 75382416 | 145134800 | 1.93 |
| NII | 31617647 | 195534600 | 6.18 |
| Retail | 73774510 | 709226000 | 9.61 |
| Employee | 10204082 | 15608600 | 1.53 |
| Shareholders | 23529412 | 78940600 | 3.35 |
| Overall | 214508067 | 1144444600 | 5.34 |
The group has launched its second group offering after a gap of 61 years and the company enjoys a huge goodwill with its retail investors. The subscription level has been excellent from retail investors but was a bit disappointing on the QIB portion being subscribed 1.93 times. The market scenario in the last week and the global cues has had a negative bearing on the subscription level.
The price band which was Rs 51-59 is likely to be finalised on the lower side of the same considering the fact that it would be in the interest of new shareholders if the issue price is not finalised aggressively.
I believe the company may fix a price closer to Rs 54 and considering the tremendous goodwill that the company enjoys may offer a price of even Rs 52. The price is likely to be finalised by today. evening.
