The Initial Public Offering (IPO) of Navkar Corporation managed to get fully subscribed on the third day despite adverse market conditions. The issue was subscribed 2.84 times, stock exchange data showed.
The news couldn’t have come at a better time for the street as numerous market experts expressed their concerns about the impact of declining secondary markets on the primary markets. Four companies — PEBS Pennar, Prabhat Dairy, Shree Pushkar Chemicals and Fertilisers, and Sadbhav Infrastructure Project — have lined their public issues during the next 10 days. Together, these companies have the potential to raise close to Rs 1,500 crore.
A detailed look at category wise bidding data in the BSE and NSE of Navkar Corporation, suggests that the Qualified institutional buyers bid for more than 5.28 crore shares against 81.63 lakh shares reserved for the category. The non-institutional category comprising of high net-worth individuals (HNIs) was subscribed 0.9 times. HNIs bid about 54.86 lakh shares against 61.22 lakh shares reserved.
The retail book was subscribed close to 1.59 times on day one of the offer. Retail investors, whose investment should not exceed a total R2 lakh as per Sebi rules, bid for 2.27 crore shares as against 1.42 crore on offer.
The total size of the IPO is R600 crore – comprising of fresh issue of equity shares aggregating to R510 crore and offer for sale of R90 crore by the selling shareholder namely Sidhhartha Corporation Pvt Ltd, a member of the promoter group.
Navkar Corporation is an operator of container freight stations (CFSs) in India. The company operates in close proximity to the Jawaharlal Nehru Port (JNP), the largest container port in India.
The response for the other IPOs was however tepid on Wednesday as the issue of Shree Pushkar Chemicals were subscribed 0.46 times while the initial offering of Pebs Pennar was subscribed 0.07 times.