Prakash Constrowell Limited which had tapped the capital markets with its IPO to raise Rs 60 crs in a price band of Rs 130-138 was subscribed. The issue was open between the 19th and 21st of August 2011. The issue was expensive and received its maximum support from retail investors. The overall issue was subscribed 2.21 times with retail portion subscribed 4.68 times. There was an active grey market in the shares of the company and a large number of transactions were done where the application form of Rs 2 lac was purchased between Rs 2200-2400.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 2307692 | 724750 | 0.31 |
| NII | 692308 | 1909850 | 2.76 |
| Retail | 1615385 | 7562000 | 4.68 |
| Overall | 4615385 | 10196600 | 2.21 |
The issue has been subscribed with the help of “friendly” intermediaries as the fundamentals of the company are weak. Once the issue is subscribed the price at which the shares would be issued is the top end of the band and I believe the issue would be priced at Rs 138.
There is a huge pipeline of issues and by the time September 2011 ends, the number of issues opening from the 19th of September to the 30th of September could be as high as 9 to 10.
