MBL Infrastructures Limited which was tapping the capital markets with its maiden IPO which opened on Friday the 27th November closed today after garnering the required support. The issue was subscribed but with a difference. The retail subscription was very poor and the response far from adequate. The company received subscription for a mere 7.76 lakh shares in the retail category against the reservation of 19.6 lakh shares. This clearly shows the lack of interest from retail participants and also the fact that the issue was very aggressively priced leaving nothing on the table for investors.
Details of the subscription are as follows:-
| QIB | 65,64,705 shares | 3.3493 times |
| HNI’s | 22,22,570 shares | 2.6459 times |
| Retail | 7,76,720 shares | 0.3963 times |
| Employee | 13,755 shares | 0.1376 times |
| Overall | 95,77,750 shares | 1.97 times |
The response from retail speaks for itself. This writer had mentioned in the IPO review that the issue is expensive compared to its peers and should be avoided. The first part of the subscription is over. Only time will tell how the issue fares on listing and subsequent to the listing. The merchant bankers to the issue were Motilal Oswal Investment Advisors Private Limited and the Syndicate member was Enam Securities Private Limited.
