Investors gulp Sobha IPO, lukewarm to Ruchira
Bangalore-based Sobha Developers got an overwhelming response for its 88.93-lakh share initial public offer. The issue, which closed on Wednesday, was oversubscribed 104 times.
In comparison, Ruchira Papers’ IPO was lukewarm, attracting bids only 1.83 times the issue size, as per the data available with the National Stock Exchange, while going to press. Qualified institutional buyers (QIB) were the major subscribers to the Sobha Developers’ issue.
The portion reserved for QIBs was subscribed by over 164 times, while that for high net worth individuals (HNI) was subscribed 126 times. Even retail investors have shown good interest in the IPO, with the portion reserved for them getting oversubscribed close to 17 times.
Total bids received for the issue were more than 92.64 crore shares as against its total issue size of 88.93 lakh equity shares. The company proposes to utilise the net proceeds of the issue to finance land acquisition and fund ongoing projects. Part of the proceeds would be used to repay certain loans.
In the case of Ruchira Papers, the QIB portion was oversubscibed 1.63 times, while the retail portion was undersubscibed 0.6 times. The IPO of Ruchira Papers has been over subscribed 1.83 times and received 1.52 crore bids for its issue comprising 1.11 crore shares.
The issue proceeds will be utilised for setting up of a 33,000 tonnes per annum capacity for the manufacture of writing and printing paper, including a chemical recovery plant and a 6mw co-generation plant.
Kotak Investment Banking along with Enam Financial Consultants and IL&FS Investsmart were the book running lead managers to the Sobha issue. When contacted, S Ramesh, chief operating officer of Kotak Mahindra Capital, said, the buoyant performance of Sobha can be attributed to overall real estate sector doing well, promoter’s track record and the company’s backward integration.
Mr Ramesh said that the overall good sentiment in the primary market can also be attributed to the buoyant mood in the secondary market. When asked whether the arrival of mega IPOs like Cairn and DLF in the near future will suck out liquidity from the bourses, he said it was unlikely and there was sufficient liquidity in the system.
Basmati rice manufacturer L&T Overseas’ IPO is to close on Thursday and was subscribed by about 1.5 times at the time of going to press.
In comparison, Ruchira Papers’ IPO was lukewarm, attracting bids only 1.83 times the issue size, as per the data available with the National Stock Exchange, while going to press. Qualified institutional buyers (QIB) were the major subscribers to the Sobha Developers’ issue.
The portion reserved for QIBs was subscribed by over 164 times, while that for high net worth individuals (HNI) was subscribed 126 times. Even retail investors have shown good interest in the IPO, with the portion reserved for them getting oversubscribed close to 17 times.
Total bids received for the issue were more than 92.64 crore shares as against its total issue size of 88.93 lakh equity shares. The company proposes to utilise the net proceeds of the issue to finance land acquisition and fund ongoing projects. Part of the proceeds would be used to repay certain loans.
In the case of Ruchira Papers, the QIB portion was oversubscibed 1.63 times, while the retail portion was undersubscibed 0.6 times. The IPO of Ruchira Papers has been over subscribed 1.83 times and received 1.52 crore bids for its issue comprising 1.11 crore shares.
The issue proceeds will be utilised for setting up of a 33,000 tonnes per annum capacity for the manufacture of writing and printing paper, including a chemical recovery plant and a 6mw co-generation plant.
Kotak Investment Banking along with Enam Financial Consultants and IL&FS Investsmart were the book running lead managers to the Sobha issue. When contacted, S Ramesh, chief operating officer of Kotak Mahindra Capital, said, the buoyant performance of Sobha can be attributed to overall real estate sector doing well, promoter’s track record and the company’s backward integration.
Mr Ramesh said that the overall good sentiment in the primary market can also be attributed to the buoyant mood in the secondary market. When asked whether the arrival of mega IPOs like Cairn and DLF in the near future will suck out liquidity from the bourses, he said it was unlikely and there was sufficient liquidity in the system.
Basmati rice manufacturer L&T Overseas’ IPO is to close on Thursday and was subscribed by about 1.5 times at the time of going to press.
posted by SY at 12:32 PM
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