The IPO from Avenue Supermarts which was to raise Rs 1,870 crs in a price band of Rs 295-299 was subscribed by a huge number. The company had earlier allocated 1.87 cr shares to 35 anchor investors comprising of 58 entities at Rs 299.

The issue was subscribed an overall 104.59 times with QIB portion subscribed 144.62 times, HNI 277.74 times and Retail 7.51 times. In all approximately 18.5 lakh applications have been received setting a new record. The previous record was held by recently listed BSE Limited which had received 12 lakh applications. The retail interest seems to have come very strongly in this issue which is backed by an ace market investor of over four decades experience.

The total amount invested in this issue is a sum of Rs1,39,323crs. The cost of funding which considering year end considerations had risen sharply to between 11-13%. The cost per share for the leveraged HNI varies from Rs 177 at 11% to Rs 193 at 12% and moves up to Rs 209 at 13%. So far the unofficial market premium is in a range of Rs 260-270 per share, which is comfortable for the leveraged investor and gives ample returns to all concerned.

This issue has brought about a sense of euphoria in the secondary market and would give a fillip to the strong pipeline of IPO’s waiting to tap the markets. The fact that markets would be at a new all-time high when they open on Tuesday post the resounding victory of BJP in Uttar Pradesh would help matters further. All in all a great show by the issue.