TD Power Systems Limited which had tapped the capital markets with its IPO to raise Rs 227 crs was subscribed. The price band was Rs 256-261. The market conditions during the period that the issue was open was very depressing and it indeed is a credit to the fundamentals of the company that they could receive excellent response from QIB’s and they subscribed their portion 6.52 times. The other two categories received lukewarm response and their portions were subscribed 38% each.
The company had allocated 15% of the IPO to anchor investors at Rs 256.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 3129042 | 20391000 | 6.52 |
| NII | 1330079 | 502600 | 0.38 |
| Retail | 3103516 | 1183650 | 0.38 |
| Overall | 7562637 | 22077250 | 2.92 |
It’s a long time since one has seen an IPO being subscribed on the basis of support from just the institutional investors. In the other cases where the issues were “managed” the issue received mediocre support from the institutional investors and was subscribed on the basis of support from HNI’s and retail. These issues invariably fall after listing whether it happens on the day of listing or sometime later.
All in all encouraging response from QIB’s and lends support to the fact that issues are still saleable if they have fundamentals.
