The offer for sale of 3,05,99,017 equity shares in a price band of Rs 135-145 received overwhelming support and was oversubscribed a massive 157.41 times. The issue had opened on Tuesday the 28th of September and closed on Thursday the 1st of October. This was the third issue from the government of India stable engaged in shipbuilding after Cochin Shipyard and Garden Reach Shipbuilders Limited.

The issue was subscribed 89.71 times in the QIB portion, 678.88 times in the HNI category and 35.63 times in Retail category. Even the employee category was oversubscribed 3.88 times. There were 26.31 lac applications and on the basis of number of lots, the issue was subscribed 25.60 times.

HNI category saw funds being garnered to the tune of Rs 44,600 crs, while the overall issue garnered funds to the extent of Rs 69,838 crs. The cost of funding for the leveraged HNI would be between Rs 132-142.

In August 2017, Cochin Shipyard Limited had tapped the markets with its offer for sale of Rs 1,486 crs and received subscription for 1.11 lakh crs. The issue was oversubscribed 76.19 times and there were 20.75 lac applications at that time, making it the largest subscription.

In October 2018, the issue from Garden Reach Shipbuilders and Engineers Limited struggled to get its issue of 344.67 crs subscribed and just about managed it after extending the same by three days.

The issue from MDL has caught the fancy of the market but with funding cost overtaking rational listing price, will leveraged HNI make money? Seems Doubtful.

Full details of subscription are given below.