IPO watch: Mazagon Dock issue oversubscribed, UTI AMC subscribed 25%, Likhitha Infrastructure at 84%

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Updated: September 29, 2020 4:36 PM

Of the three IPOs that opened today, retail investors were seen fully subscribing to their portion in two of these.

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Primary markets saw three fresh initial public offerings open for subscription on Tuesday, adding to the recent spike in the number of IPOs that stock markets have entertained. Of the three IPOs that opened today, retail investors were seen fully subscribing to their portion in two of these. Mazagon Dock Shipbuilders IPO was fully subscribed before market closing on Tuesday with retail investors subscribing to their quota 5.2 times on day one. Likhitha Infrastructure IPO was subscribed 84% with retail investors subscribing their portion 2.24 times. The largest among the lot, UTI AMC, which has been subscribed 25% so far.

For UTI AMC IPO, bid buy qualified institutional buyers (QIB) were non-existent so far. However, non-institutional investors (NII) bid for 6% of their portion so far and retail investors bid were at 48% of their portion. The employee quota which offers 2 lakh shares to UTI AMC employees was subscribed 29% so just before market closing on Tuesday. UTI AMC is the largest of the three IPOs currently open for subscription. Overall subscription of the issue was at 25%. The grey market premium for UTI AMC has been shrinking in recent days, down to Rs 40-50 per share from Rs 150 per share days ago. 

Also Read: UTI AMC grey market premium slips, Mazagon Dock gains; two issues oversubscribed by retail investors

State-run Mazagon Dock was the only issue to be fully subscribed on day one itself. QIBs were muted for Mazagon dock as well with no prominent bids so far on day one. NIIs, however, subscribed their portion 73%. Retail investors have been actively bidding for issues in recent weeks, oversubscribing all issues. Similarly, the Mazagon Dock issue was oversubscribed by retail bidders 5.20 times. Employees of the company have been offered 3.45 lakh shares which were subscribed 26% on the initial day of bidding. In the grey market, the issue has been commanding a premium of Rs 120-130 per share. 

Likhitha Infrastructure IPO was subscribed to 84% when stock markets closed for the day. QIBs subscribed the issue 2% on the initial day of the subscription window. NIIs have subscribed to 30% of their portion of the issue so far. Retail investors were rushing to the Likhitha Infrastructure IPO in big numbers as well, subscribing their portion 2.24 times. 

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