MUMBAI: A Rs 12-crore IPO for (*8*) Automobile, a Delhi-based two-wheeler dealership with two showrooms and eight employees, obtained bids price about Rs 4,800 crore – oversubscribed almost 400 instances.
The uncharacteristically excessive subscription figures for a small medium enterprise IPO stumped Dalal Street whilst this supply’s service provider banker could not justify the surprising consideration.
(*8*) Automobile supplied 10.2 lakh shares at a set value of Rs 117. The subject opened on Aug 22 and closed on Aug 26 (Monday). According to BSE information, at shut of subscription window on Monday night, there have been bids aggregating almost 40.8 crore shares, translating to 398 instances subscription. City-based Swastika Investmart is the service provider banker to the problem.
Retail traders had been probably the most energetic with mixture demand at 24.1 crore shares, translating to almost 500 instances subscription of the retail portion within the supply. Total demand for excessive net-worth traders was almost 150 instances the overall supply measurement whereas the institutional half was subscribed a modest 12 instances.
According to a supply acquainted with the event, the service provider banker had marketed the (*8*) Automobile IPO like some other one that will be subscribed by “5-10-20 times” – which isn’t uncommon for an SME IPO. However, the sturdy subscription numbers had been “beyond expectation” of the service provider bankers. “There’s no reason for such high numbers,” a supply informed TOI and the individuals there are attempting to determine who all utilized for the supply.
On X, veteran fund supervisor Samir Arora mentioned, “Resourceful Automobile turned out to be resourceful indeed.” Another X consumer, going by the deal with @EquityInsightss, identified that with a detrimental money circulate, this subscription determine was “insane”.
The uncharacteristically excessive subscription figures for a small medium enterprise IPO stumped Dalal Street whilst this supply’s service provider banker could not justify the surprising consideration.
(*8*) Automobile supplied 10.2 lakh shares at a set value of Rs 117. The subject opened on Aug 22 and closed on Aug 26 (Monday). According to BSE information, at shut of subscription window on Monday night, there have been bids aggregating almost 40.8 crore shares, translating to 398 instances subscription. City-based Swastika Investmart is the service provider banker to the problem.
Retail traders had been probably the most energetic with mixture demand at 24.1 crore shares, translating to almost 500 instances subscription of the retail portion within the supply. Total demand for excessive net-worth traders was almost 150 instances the overall supply measurement whereas the institutional half was subscribed a modest 12 instances.
According to a supply acquainted with the event, the service provider banker had marketed the (*8*) Automobile IPO like some other one that will be subscribed by “5-10-20 times” – which isn’t uncommon for an SME IPO. However, the sturdy subscription numbers had been “beyond expectation” of the service provider bankers. “There’s no reason for such high numbers,” a supply informed TOI and the individuals there are attempting to determine who all utilized for the supply.
On X, veteran fund supervisor Samir Arora mentioned, “Resourceful Automobile turned out to be resourceful indeed.” Another X consumer, going by the deal with @EquityInsightss, identified that with a detrimental money circulate, this subscription determine was “insane”.
