Bharti Infratel IPO sails through on FII tailwind
Retail investors and high net worth individuals (HNIs) by and large stayed away from the issue. Data on stock exchanges showed the IPO was subscribed 1.3 times with bids coming in for 20.82 crore shares against the 16.06 crore shares on offer in the price band of R210 to R240 apiece.
The institutional portion of the IPO was subscribed 2.84 times with foreign investors accounting for bulk of the bids — 18.02 crore shares — amounting to more than R4,300 crore. Domestic financial institutions and mutual funds bid for 33.49 lakh and 43.48 lakh shares, respectively. However, the quotas reserved for retail investors and HNIs were subscribed only 0.2 and 0.3 times, respectively. The scrip is expected to be priced at R225 a piece.
The strong institutional demand for Bharti Infratel comes at a time when foreign institutional investors (FIIs) have been bullish on Indian equities. In 2012 so far, FIIs have put in more than $22 billion into Indian stocks, the second-largest amount in a year since FIIs started investing in India in 1993.
Huge inflows from
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