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.

UTI Asset Management Company Limited (UTI AMC) which had tapped the capital markets with its offer for sale in a price band of the issue was Rs 552-554. The was open from Tuesday the 29th of September and closed on Thursday the 1st of October.

Earlier the company had allotted shares to anchor investors. The company allotted 1,16,36,124 equity shares to 33 anchor investors comprising of 67 entities. Included in this list, are 15 domestic funds who subscribed through 49 schemes. The highest allocation was made to ICICI Prudential who was allotted 11.61% of the anchor allocation. This was followed by allocating between 7.73% to 7.75% to three mutual funds, namely HDFC AMC, Aditya Birla Sunlife and Reliance Nippon India.

The offer for sale consisted of an issue size of 3,89,87,081 equity shares. The issue saw the QIB portion subscribed 3.34 times, HNI portion undersubscribed at 0.93 times and Retail portion subscribed 2.32 times. The Employee portion was subscribed 1.34 times and the overall issue was subscribed 2.31 times.

The issue saw 8.80 lac applications and on the basis of lots, the retail portion was subscribed 1.75 times.
Full details of the subscription in given below.

UTI Asset Management Company Limited (UTI AMC) which is tapping the capital markets with its offer for sale completed allocation to anchor investors. The company allotted 1,16,36,124 equity shares to 33 anchor investors comprising of 67 entities. Included in this list, are 15 domestic funds who subscribed through 49 schemes. The highest allocation was made to ICICI Prudential who was allotted 11.61% of the anchor allocation. This was followed by allocating between 7.73% to 7.75% to three mutual funds, namely HDFC AMC, Aditya Birla Sunlife and Reliance Nippon India.

The offer for sale consists of an issue size of 3,89,87,081 equity shares in a price band of Rs 552-554. The issue has opened on Tuesday the 29th of September and would close on Thursday the 1st of October. The NAV of the company is Rs 212.88 as of 31st March 2020. The company had earned an EPS of Rs 21.53 for the year ended March 2020, implying a PE ratio of 25.64-25.73. The company has announced a dividend of Rs 7 for the year ended March 2020, but the record date for the same is yet to be announced. Further the AGM for the financial year ended 2019-20 is yet to be held where this proposed dividend would be ratified. This effectively means that the current issue has a dividend component of Rs 7 which is still available.

The full list of anchor investors with their allocation is given below: –