The issue from Teamlease Services Limited which had tapped the capital markets with its primary issue and offer for sale received excellent response and was very well subscribed. The issue was in a price band of Rs 785-850 and had a fresh issue for Rs 150 crs and an offer for sale of 32.19 lac shares.
The issue had earlier completed its anchor allocation which consisted of 15 anchor investors comprising of 26 entities. The shares were allotted at the top end of the band at Rs 850. The response to the issue from all segments was excellent. The subscription was helped in a great manner by the leveraged HNI whose cost of funds was 7% for 7 days. This effectively meant that the funding cost per share per time would be Rs 850*7%*7/365 = Rs 1.14. Considering that the provisional subscription figure is 185 times, the effective cost of leverage would be Rs 211. Current grey market premiums indicate that the HNI is in the money.
HNI’s have started an unhealthy practice which needs to be nipped in the bud by the regulator immediately. They bid in the HNI category where bidding ends on the last day at 4 pm. They then take a call whether they want the bid to continue or not. If they do not want to continue they make another application in the retail category with the same details as well and automatically both bids are then cancelled as multiple applications. This is not a healthy practice and action should be taken immediately.
Details of the subscription category wise are given below: –
|
Bucket Size |
Shares Applied for |
Times oversubscribed |
|
|
|
|
| QIB |
1601923 |
43205970 |
26.97 |
| HNI |
768084 |
142278840 |
185.24 |
| Retail |
512056 |
5440230 |
10.62 |
| Employees |
10000 |
13845 |
1.38 |
|
|
|
|
| Total |
2892063 |
190938885 |
66.02 |
