InterGlobe IPO flies high on QIB support

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Mumbai | Updated: October 29, 2015 2:14:09 AM

The initial public offering (IPO) of InterGlobe Aviation continued its ascent on Wednesday, led by support from institutional investors, even as high net-worth individuals and retail investors remained on the sidelines.

The initial public offering (IPO) of InterGlobe Aviation continued its ascent on Wednesday, led by support from institutional investors, even as high net-worth individuals and retail investors remained on the sidelines. The issue was subscribed 1.55 times on the second of the three-day offering, stock exchange data showed.

The qualified institutional buyers’ (QIB) portion was subscribed more than five times. Institutions bid a little over 4.389 crore shares against

85.23 lakh shares reserved for this category. The non-institutional category comprising high net-worth individuals (HNIs) was subscribed a meagre 0.044 times. HNIs bid about 2.54 lakh shares against 58.2 lakh shares on offer.

The retail book was subscribed close to 0.2 times on the second day, data showed. Retail investors, whose investment should not exceed a total R2 lakh as per Sebi rules, bid for 25.1 lakh shares against 1.35 crore reserved.

ipo-1 InterGlobe’s IPO is the biggest primary market offering since Bharti Infratel’s Rs 4,100 crore-plus public issue in December 2012, statistics compiled by Prime Database showed. The company filed its preliminary prospectus with Sebi on June 30, 2015, and received regulatory clearance on September 11.

Citi Group, JPMorgan and Morgan Stanley are the global coordinators for the issue while Barclays capital, Kotak Investment banking UBS are the book running lead managers for the issue.

Kelkar IPO does well too Meanwhile, SH Kelkar also received a strong response to its IPO on Wednesday. The issue received 41% bids on the first of the three-day bidding.

The QIB portion was subscribed 0.42 times. Institutions bid a little over 24.8 lakh shares against 58.8 lakh shares reserved for this category.

The non-institutional category was fully subscribed. HNIs bid 45.1 lakh shares against 43.1 lakh shares on offer. The retail book was subscribed 0.15 times, data showed.

Kotak Investment Banking and JM Financial are financial advisors to SH Kelkar IPO.

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