Punjab & Sind Bank Limited which had tapped the capital markets with its IPO for 4 cr shares in a price band of Rs 113-120 received excellent support from QIB’s. They subscribed their portion 49.8 times. Bidding by QIB’s closed yesterday and would close for all other bidders today.

The overall issue has been subscribed 29.77 times with the HNI portion being subscribed 22.91 times and the retail portion 8.38 times. This issue saw the employee portion subscribed 1.22 times. It is expected that the retail portion would in all probability be oversubscribed well above the 33 times level, which would then lead to allotment by lottery for all applicants in the retail category. The maximum allotment in this case would then be 50 shares per successful allotment.

The subscription in Punjab & Sind Bank by QIB’s is similar to that in MOIL. MOIL was subscribed 49.16 times while Punjab Sind was subscribed 49.8 times. The difference is in the value of total bid. MOIL value of offer for QIB’s was Rs 617.4 cr while the same is Rs 228 crs.

Retail investors have to keep in mind that there is strong appetite for investing in the PSU offers and this is most likely to make the subscription level cross the pivot of 33 times in retail. This could lead to disappointment post allotment as all successful applicants would be allotted the minimum of 50 shares.