Heranba Industries Limited which had tapped the capital markets with its fresh issue for Rs 60 crs and an offer for sale of 90.15 lac shares, in a price band of Rs 626-627 was oversubscribed 83.29 times. The issue was open from Tuesday the 23rd of February to Thursday the 25th of February. Earlier the company had completed allocation to anchor investors by allotting 29,90,520 equity shares to 15 anchor investors comprising of 18 entities. The highest allocation of 5,58,290 equity shares was made to Government Pension Fund Global. This was 18.67% of the anchor allocation. This was followed by an allotment of 3,58,869 equity shares or 12.00% of the allocation to HDFC Mutual Fund. The top two anchor allotments constituted 9.17 lac shares or 30.67% of the anchor portion.

The issue was subscribed 67.45 times by QIB’s 271.15 times by HNI’s and 11.84 times by Retail investors. Overall, the issue was subscribed 83.29 times. There were 14.55 lac applications and on the basis of lots, the retail portion was subscribed 9.59 times.

The cost of funding for the leveraged HNI would be in the region of Rs 240-248. While the subscription levels are excellent. The challenge would be to see whether the share can sustain the cost of funding when it lists. The breakeven point for the leveraged HNI would be Rs 870-880.