Mahindra Logistics Limited which had tapped the capital markets with its offer for sale of 1,93,32,346 equity shares were subscribed. The issue was in a price band of Rs 425-429. Earlier the company had allotted 57,62,203 shares to 15 anchor investors comprising of 19 entities. The highest allocation of 5,36,112 shares or 9.30% has been made to four investors which include 2 FPI’s and 2 domestic funds.
The issue was subscribed overall 7.90 times with QIB portion subscribed 15.60 times. The HNI portion was subscribed 2.02 times while retail was subscribed 6.10 times. In terms of number of applications, the company received 10.04 lakh applications and the retail portion was subscribed 5.08 times in terms of lots.
The overall response from HNI was disappointing and this stems from the fact that they were quite certain that the issue would not receive triple digit over subscription in their category and hence not be able to get funding on a low margin. Hence the poor subscription. Its time that the regulator looked at the bucket size and took action where if allocation is not allowed to a particular category from undersubscription in that category, do not allow them to bid for that category. The case in point is that QIB portion if undersubscribed cannot be transferred to either retail or HNI. In that case why allow HNI to bid for QIB portion and distort demand. This present system needs to be looked in and this gross disruption in demand be stopped at the earliest.
Full details of shares applied in each category are given below: –
| Bucket Size | Shares applied for | Times oversubscribed | |
| QIB | 3841469 | 59941082 | 15.60 |
| HNI | 2881102 | 5966592 | 2.07 |
| Retail | 6722572 | 41022360 | 6.10 |
| Employee Reservation | 125000 | 242624 | 1.94 |
| Total | 13570143 | 107172658 | 7.90 |
The issue would close on Thursday the 2nd of November. The company allotted 57,62,203 shares to 15 anchor investors comprising of 19 entities. The highest allocation of 5,36,112 shares or 9.30% has been made to four investors which include 2 FPI’s and 2 domestic funds.
