Equitas Holdings’ IPO Receives 17 times of Subscription On Closing

Initial public offering of Equitas Holdings got fully subscribed as on 7th April closing day of the bidding. As per the data of BSE and NSE, IPO got total bids for 247 crore shares against 13.91 crores shares on the block. This was 17 times the total issue size.

The issue got 1.4 times bids for 20.20 crore shares of the total issue size on BSE. While, the issue received bids for 8.99 crore shares, which was 0.65 times the issue size on NSE. Total bids recorded higher  by 38% to 5.26 crore shares (BSE and NSE combined) of the total issue by the end of second day. Where, the retail quota placed bids for 4.64 crore shares on the BSE which was 0.66 times of the total quota limit of  6.93 crore shares for the investment group. While, the non-institutional investor (NII) category put total subscription of 11.25 crore shares (3.78 times the quota limit), QIBs 4.64 crore (1.16 times) shares and employees 49,545 (0.19 times) shares. The QIB quota was subscribed 0.90 times, the retail quota by 0.36 times, the NII quota by 1.93 times and the employee quota 0.13 times on NSE.

According to the IPO prospectus, Qualified institutional buyers (QIBs) can bid for not more than 50 per cent of the issue size. Retail individual investors (RIIs) can bid for up to 35 per cent, while non-institutional investors (other than RIIs) can bid for up to 15 per cent of the issue size. FIIs and NRIs are not allowed to participate in the issue as per the IPO prospectus.

After Bharti Infratel’s IPO worth Rs. 4155 crore which was brought in December 2012, Equitas is the biggest IPO with the price band of Rs. 109-110 per share.

The firm brought its IPO in the market for the purpose to enhance the Capital base of the firm’s subsidiaries to meet their future capital requirements arising out of the growth in its business.

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