Tree House Education & Accessories Limited which had tapped the capital markets with its IPO which had opened on Wednesday the 10th of August and closed yesterday was subscribed. Considering the turbulent times in the market and the fact that the issue looked overpriced, the issue was just about subscribed in the QIB category and the retail being the largest subscribed category.

The company had allotted shares to anchor investors at the lower end of the price band of Rs 132. This issue has a fixed component of upfront discountof Rs 6 per share payable to retail investors and may have attracted retail investors, considering the turbulent times in the market place.

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

The issue is likely to be priced at the lower end of the price band considering the fact that anchor investors have come at the same price of Rs 132. Also it appears that a substantial portion of the QIB’s have also come at that price and therefore the promoters and merchant bankers may be forced to price the issue at Rs 132. This effectively means that all investors other than retail investors will get allotment at Rs 132, while retail investors will get at Rs 126.