REC or Rural Electrification Corporation Limited has done it. The issue was not only subscribed but this time around it appears that the two big players LIC and SBI have not helped or are not responsible in subscribing the issue. The situation is that they are unlikely to get any shares in this issue. This i speaks very well for the strength of the issue and the fundamentals of the company.
Some of the big names who have subscribed to the issue include Halbis, a HSBC entity for about Rs 1000 crs, ICICI Prudential about Rs 410 crs, HDFC Mutual about Rs 255 crs, Reliance Mutual Rs 220 crs, SBI Life Rs 150 crs and a portfolio manager from Prudential Rs 500 crs.
| Category | Shares offered | Shares Bid | Subscription Ratio |
| QIB | 85691000 | 472770180 | 5.5172 |
| NII | 25707300 | 52808640 | 2.0542 |
| Retail | 59983700 | 13776810 | 0.2297 |
| Employee | 350000 | 298590 | 0.8531 |
| TOTAL | 171732000 | 539654220 | 3.14 |
Bids in the QIB segment have come in the price of Rs 215, Rs 210, Rs 208 and downwards upto Rs 203. Simple calculation shows that no allotment will be made to people who have bid at Rs 205 and Rs 204 and only partial allotment will happen at Rs 206. There will be full allotment to retail and employees. The unsubscribed portion from retail and employee is likely to be transferred to the
QIB portion simply because there is a price advantage available there. I believe that the fact that the share has closed today at Rs 212.65 is a fair indication of the strength of the share. It may also be noted that if HNI’s are not allotted shares from the retail unsubscribed portion there could be short covering in the share tomorrow.
A great show by REC and it clearly shows that if the issue is well priced it sells.
