United Bank of India which had tapped the capital markets with a public issue in the price band of Rs 60-66 received overwhelming support. The issue was subscribed over 33 times. Retail investors were offered a discount of Rs 3 per share and even the retail category was subscribed just under 10 times.

The subscription clearly shows that there is appetite for fresh paper as long as there is money on the table. Pricing is the key and all should appreciate that there is plenty of information available about every IPO. Mere subscription by QIB’s and HNI’s does not guarantee results or returns post listing. The success of an issue needs retail participation and I believe the time has come for all intermediaries and players connected to the capital markets, to appreciate this fact. The retail segment accounts for 30-35% of the issue size but in terms of number of shareholders he accounts for in excess of 95% of the public shareholders at the bare minimum.

This fact and that post listing the retail adds the colour and the flavour should be borne in mind. Retail loves to apply in issues and like his seniors and more knowledgeable QIB’s wants to encash profits on day one.