Rail Vikas Nigam Ltd IPO for Rs 481 crore saw robust demand on the final day, as the issue was subscribed about 1.72 times on the final day of the issue.
Rail Vikas Nigam Ltd IPO for Rs 481 crore saw robust demand on the final day, as the issue was subscribed about 1.72 times on the final day of the issue. The issue received bids for 43.63 crore shares as against the issue size of 25.34 lakh shares implying a total subscription of 1.72 times, at 4.30 pm. Notably, the QIB portion saw heavy demand and was subscribed 1.36 times, as investors from the category bid for a total of 17.20 crore shares as against their issue size of 12.64 crore shares.
Retail investors portion for subscribed by 2.71 times, while the employee portion was subscribed by about 0.8 times. The non-institutional investor portion was subscribed by about 0.28 times, data from the exchanges showed. The PSU issue is a pure offer-for-sale or OFS which opened on March 29th. Post this IPO, the government’s stake in the firm will reduce to 88% after diluting its stake of 12.2% in the rail PSU.
Meanwhile, diagnostics services provider Metropolis Healthcare public offer to raise up to Rs 1,200 crore saw tepid response on Day 1 as the issue was subscribed about 10% at 4.40 pm. Retail investor portion saw the highest demand at 24%, followed by the QIB portion, which was subscribed by about 4%. As a part of its public offer, Metropolis Healthcare will be selling 1.36 crore shares at Rs 877-880 apiece in a pure offer-for-sale, according to the firm’s prospectus. Accordingly, the firm will not receive any proceeds from the issue.
The firm has set a bid lot of 17 equity shares and in multiples of 17 equity shares thereafter. The issue opens for subscription on April 3rd, and will close on April 5th. “Valuation is rich but justified: The offer price implies a P/E ratio of ~37x annualized earnings for FY19 , which is ~16% discount to Dr lal Pathlabs but 22% premium to Thyrocare (Thyrocare’s 30x /Dr Lal Pathlab’s 44x FY19 EPS). We keep a positive stance on the IPO,” IDBI noted in its latest report.