| Name | Date of listing | Issue Price | closing price | closing price | % gain loss | change over |
| 20th March | 13th March | over week | lssue price | |||
| Sharda Cropchem Limited | 23rd September | 156.00 | 293.85 | 310.70 | -10.80 | 88.37 |
| Shemaroo Entertainment Limited | 1st October | 170.00 | 203.90 | 208.20 | -2.53 | 19.94 |
| Monte Carlo Fashion Limited | 19th December | 645.00 | 479.00 | 516.50 | -5.81 | -25.74 |
| Otel Communications Limited | March | 181.00 | 163.40 | N.A | -9.72 | -9.72 |
Inox Wind which had tapped the capital markets with its primary offer for Rs 700 crs and an offer for sale of 1cr shares was subscribed 18.60 times. The issue had opened on Wednesday the 18th of March and closed on Friday the 20th March. The price band was Rs 315-325. The anchor portion which was upto 60% of the QIB portion was fully allotted. The QIB portion was 50%, HNI 15% and retail portion 35%.
| QIB | 6637826 | 236836215 | 35.6798 |
| HNI | 4818989 | 170476020 | 35.3759 |
| Retail | 11244306 | 24217245 | 2.1537 |
| Employees | 500000 | 60795 | 0.1216 |
| Total | 23201121 | 431590275 | 18.6021 |
The subscription from retail was interesting as slowly but surely they are understanding that in issues which would be subscribed the terms of allotment make it such that it is sensible to bid for just one lot. The issue saw applications from 4,10,449 people. When one considers that the retail application was 2,42,17,245 and considering that 449 applications were for other categories, it means that 4.10 lac people bid for 242.17 lac shares at 59 shares apiece. The lot size was 45 shares or in other words average retail application was 1.25 lot.
The success of this IPO at subscription time is a welcome sign and coming after the poor listing of an earlier IPO and a dismal subscription by yet another is a breath of fresh air and keeps hopes alive for the impending pipeline of IPO’s waiting to tap the capital market.
The issue from Inox Wind Limited which is tapping the capital markets with its issue to raise Rs 700 crs and an offer for sale of 1 cr shares completed its allocation to anchor investors. The price band of the issue is Rs 315-325 and there is a discount of Rs 16 to eligible employees and retail investors. The anchor portion was upto 60% of the QIB bucket which in this case was 50%. This is the first issue after Ortel and Adlabs where the entire permissible quota to anchor investors was allocated.
The company allotted 94,25,467 shares to 16 anchor investors comprising of 37 entities at the top end of the band. This is in stark contrast to the allocation of a mere 28.11% in the case of Ortel Communications and a dismal 13.39% in the case of Adlabs Entertainment. To add insult to injury, both issues were priced at the lowest price of the band while Adlabs had to lower the price band after failing to receive adequate response. The case of Adlabs saw the band reduced from Rs 221-230 to Rs 180-215 and the issue was finally subscribed at Rs 180.
If the merchant bankers and their advisors had taken proper feedback and priced the issue less aggressively all the heartburn, heart attacks and ignominy of failure and subsequent re-pricing could have been avoided.
Coming back to Inox Wind, very clearly strong message from the anchor book telling investors the degree of comfort that they (Anchor Investors) have in the company. Some of the marquee names include Sundaram Mutual Fund, IDFC, SBI, Blackrock, Morgan Stanley, Birla Sunlife, Kotak and Goldman Sachs.
Retail investors must apply for the minimum one lot of 45 shares as I believe the retai portion is likel;y to be subscribe 1.8 to 2.2 times on lot basis.
