InvestorQ : How was the subscription response to the HP Adhesives IPO at the close of the issue on 17th December?
Aashna Tripathi made post

How was the subscription response to the HP Adhesives IPO at the close of the issue on 17th December?

Answer
image
Aditi Sharma answered.
5 months ago
Follow

The rather small Rs.125.96 crore IPO of HP Adhesives, was subscribed 20.96 times overall at the close of subscription on Friday 17-December. The bulk of the demand came from the retail segment followed by the non-institutional investor (HNI) segment. There were a total of 25.29 lakh shares on offer in the IPO and HP Adhesives got valid bids for 529.90 lakh shares translating into oversubscription of 20.96 times the base size.

The QIB portion to the public is normally net of the anchor placement. On 14th December, HP Adhesives completed anchor placement of 20.69 lakh shares at upper price band of Rs.274. While there were only 3 anchor investors, HP Adhesives raised Rs.56.68 crore. Net of this anchor allocation, QIB quota in IPO was 13.79 lakh shares of which the issue got bids for 25.13 lakh shares till the close of the issue translating into 1.82 times subscription.

Let us now shift to the HNI portion. This portion got subscribed 19.04 times. It received applications for 131.27 lakh shares against the allotted quota of 6.90 lakh shares. Most of the funded applications and corporate bids came on last day. In the retail segment, out of the 4.60 lakh shares on offer, valid bids were put in for 373.50 lakh shares. This translates into oversubscription of retail quota to the tune of 81.24 times.

11 Views