The IPO from Dixon Technologies (India) Limited “Dixon” was subscribed and received excellent response. The company which had tapped the capital markets to raise fresh capital worth Rs 60 crs and an offer for sale of 30,53,675 shares in a price band of Rs 1,760-1766 was oversubscribed 117.83 times.

Earlier the company had allotted 10,18,027 equity shares to 15 Anchor Investors comprising of 22 entities. The issue received bids from QIB’s who subscribed their portion 134.66 times. The HNI portion was subscribed 345.61 and retail portion 10.60 times. The overall subscription was 117.83 times. Number of applications received were just over 15 lakhs which means that on basis of umber of apps the issue was subscribed 10.10 times.

The issue was to raise Rs 600 crs from the fresh issue and the offer for sale components. It raised Rs 49,400 crs of which Rs 31,078 was from HNI’s who are presumed to apply through borrowed funds. The cost of funding assuming 5.5% interest for 7 days comes to a cost of Rs 643.79 per share. This therefore assumes that a leveraged HNI is hoping to break even if the share issued at Rs 1,766 debuts at a price more than Rs 2,410. At this price, he breaks even.

The people who have applied in the HNI category includes many first timers. The book at 31,000 is big considering that there were four issues which would be using the same kitty.

The full details of subscription in various buckets is given below: –