Indian Energy Exchange Limited (IEX) which had tapped the capital markets with its offer for sale was just about subscribed. The company was offering 60,65,009 shares through an offer for sale in a price band of Rs 1645-1650. The company had earlier allotted 18,19,501 equity shares to 25 anchor investors comprising of 28 entities.

This allocation was then revised to become 7,89,120 equity shares to 11 anchor investors comprising of 16 entities. The entire allotment to FPI’s was cancelled as this is an issue of an exchange. One wonders whether merchant bankers who have handled umpteen number of issues did not have any inkling of this issue. They became aware only when the custodians of the FPI’s alerted them to this issue.

When this was done to the anchor investors it would logically apply to the QIB portion as well. While the company has issued a corrigendum to that effect that the allotment has been modified, what happens to the poor retail investor who has applied in the issue? Another very important and pertinent question would be whether these FPI’s can invest when the issue lists?

One hopes that the regulator makes the company and its BRLM’s address this issue and give an opportunity to investors to take a call on this IPO as such PE multiples can only remain if FPI’s can be there.

The QIB portion was subscribed 2.56 times while the HNI portion was undersubscribed at 0.85 times. Retail portion was subscribed 2.61 times.

The issue was offered at a PE multiple of 43.81 times based on financial year ended March 2017 earnings. The issue opened on Monday the 9th of October and closed on Wednesday the 11th of October.

The details of subscription are given below: –