RDB Rasayans Limited which had tapped the capital markets with its IPO for 45 lac shares in a price band of Rs 72-79 was subscribed. The issue was to raise Rs 32.40 crs at the lower end of the price band and Rs 35.55 crs at the upper end of the price band. The issue was expensive and had poor fundamentals. As expected there was not even a single bid from the QIB’s. The HNI portion also remained unsubscribed and received support for 75% of the allocation reserved for the category. It was the retail investors who bid for the issue and subscribed the category close to 4 times and helped the overall issue get subscribed 1.5 times.

It may be mentioned that there is another issue from the same FICB industry opening next week namely Flexituff and yet another issue from the same industry which was to open in the next week which has deferred the issue for the time being. This issue was from Plastene.

The details of the subscription level in various categories are given below: –

Now that the issue has been subscribed it would be in place to expect the issue to be priced at the upper end of the price band. Markets are in a bad shape and when such issues which are subscribed with the help of “friendly” intermediaries alone hit the market, it makes life that much more difficult for investors.

RDB Rasayans was one more IPO which opened and has been subscribed. Shraddh or no Shraddh, issues will come and the only person who will pay for the same is the hapless investor who will get stuck in such issues.