InvestorQ : How was the Tega Industries IPO response on Day 1 and why is the response to Star Health Insurance IPO so bad?
manisha Kolvenkar made post

How was the Tega Industries IPO response on Day 1 and why is the response to Star Health Insurance IPO so bad?

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Crowny Pinto answered.
5 months ago
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Let me talk about the IPO of Tega Industries first. As of the close of the first day of the IPO, the IPO got bids for 446.62 lakh shares against the 95.69 lakh shares on offer. This implies subscription of 4.67 times. Both retail and HNI segments were active although the actual QIB response would be seen on the last day.

Let me talk about the QIB portion first. Prior to IPO opening, Tega did an anchor placement of 41,00,842 shares at Rs.453, which is the upper band of the IPO range. The Rs.186 crore anchor book was dominated by domestic mutual funds. The balance QIB portion of 27.34 lakh shares got bids for just about 1.96 lakh shares on Day-1 i.e. 7% subscription for QIBs. However, good anchor demand is good news and QIB bids come in on last day only.

Now for the HNI and retail portions. The HNI portion got subscribed 4.17 times as it got bids for 85.49 lakh shares against the quota of 20.50 lakh shares. Normally, the HNI portion funded and corporate applications, come on the last day of the IPO. Retail portion was subscribed 7.51 times at close of Day-1. Retail bids were received for 359.17 lakh shares out of the 47.84 lakh shares on offer.

Finally, let me come to your query on the Star Health and Allied Insurance IPO. The IPO got subscribed by just 0.20 times with most of the demand coming from the retail investors. However, retail quota is just 10% in this case. Also the HNI and QIB portion will come in on the last day which is 02 December and the anchor demand proves that the demand is robust.

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