After Neogen Chemicals got subscribed by a whopping 41 times on Friday, the public offer has joined the club of blockbuster issues of FY20.
After Neogen Chemicals got subscribed by a whopping 41 times on Friday, the public offer has joined the club of blockbuster issues of FY20. Notably, Neogen Chemicals IPO got subscribed by 40.76 at the close of the last day of bidding on April 26th. The issue got bids for 17,49,57,510 shares as against the total issue size of 43,29,038 shares.
The IPO market has come back in vogue, after a shot hiatus in the last few months. It’s intriguing to note that while a few private sector IPOs have seen strong demand, PSU public offers have bitten the dust. Several PSU new issues have left investors with poor returns in the recent past. PSU issues including MSTC, IRCON International, Garden Reach, Coal India, NALCO, HUDCO, RCFL, National Fertilizers are all trading below their issue prices.
Apart from Neogen Chemicals, Polycab IPO was another stellar issue, which got subscribed by more than 51 times on the last day on April 9th, mainly due to heavy bidding by institutional investors and HNIs. Taking stock of the stock’s prospects going forward, analysts say that investors would do well to hold on to the shares. “This over-subscription is biggest since IPO of HDFC AMC. Investors looking for some wealth creation beyond just listing gains will achieve it if they remain invested for next 3-4 years,” Milan Vaishnav, technical analyst told Financial Express Online.
Diagnostics services provider Metropolis Healthcare IPO saw a stellar response on the last day, with the total issue subscribed by more than 5.8 times earlier this month. The issue saw bids for 4.41 crore shares as against the issue size of 76.61 lakh, implying a subscription of 5.77 times, data from NSE showed. QIB’s invested heavily into the issue, with their portion subscribed nearly 9 times the portion reserved for them.
“Given the vast geographical presence, diversified and large tests menu catering to several ailments, along with ability to capture future opportunities by way of presence in key growth areas, is likely to help Metropolis maintain its position and boost growth,” Centrum Broking had said in its IPO note.