PC Jeweller which had tapped the capital markets with a fresh issue of 451.33 lac shares at a price band of Rs 125-135was subscribed. The issue had opened on Monday the 10th of December and closed on Wednesday the 12th of December. The issue was to raise Rs 609.30crs from the fresh issue at the upper end of the price band.

The issue received excellent response and was subscribed 6.85 times with the best response coming from HNI’s. HNI’s subscribed to the offer 18.12 times while QIB’s subscribed almost 7.33 times. The retail category was subscribed 1.68 times. One must remember that allotment rules have been changed in the retail category and all applicants are first allotted the minimum lot before any surplus is allotted to other applicants. The total number of applications in this issue is about 1.84 lakhs which means that the average size per applicant is about 142 shares. The value of this application becomes Rs 18,000 against a normal average of Rs 1 lakh per application. The allotment to each successful applicant would be 90 shares and the ratio would be roughly 20 applicants out of 21 applicants. In other words it would be 1 for every 1.05 applications would get 90 shares and no applicant would get more than 90 shares. The issue would be priced at the upper end of the price band of Rs 135 with a discount of Rs 5 for retail investors. This issue is likely to list post-Christmas time but before the year ends.

The success of this issue, CARE and NMDC in the last two days indicates that if money is raised at reasonable prices there is appetite for fresh investment. Almost Rs 40,000 crs has been raised in three days by the three issues which include CARE, PCJ and NMDC.

details of the subscription level in various categories are given below: –