InvestorQ : What has been the latest update on the subscription levels of the Nureca IPO and the RailTel IPO for this week?
Archita Jajjoo made post

What has been the latest update on the subscription levels of the Nureca IPO and the RailTel IPO for this week?

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Niti Shenoi answered.
7 days ago
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Let me clarify that there were 2 IPOs during the week. While the Nureca IPO closed on 17 February, the other RailTel IPO will only close on Thursday 18 February. Let me first talk about Nureca, which has already closed its IPO. Nureca which closed for subscription on 17 February has seen tremendous response to its issue in terms of oversubscription.

The overall Nureca IPO was oversubscribed by nearly 39.92 times. However, the category wise oversubscription may be a lot more interesting. The retail portion was oversubscribed 167 times but this could be more because the issue had allocated only 10% of the IPO to retail investors unlike regular IPOs that allocate 35% for retail investors.

The portion allocated to qualified institutional buyers or the QIB portion got oversubscribed by 3.10 times while the non-institutional HNI portion got subscribed 31.59 times as of close of the issue. The QIB portion has been given an 75% allocation and hence the oversubscription numbers come on a much larger base.

The shares of Nureca were offered to the public in the price band of Rs.396-400. However, with the current level of oversubscription, you can safely expect the price discovery for the IPO to happen at the upper end of the band at Rs.400. Nureca had also seen robust participation from anchor investors ahead of the IPO.

Let me now turn to the other RailTel IPO which opened a day late compared to Nureca and also will be closing one day late. At the end of the second day of its IPO, RailTel had seen its issue subscribed 6.64 times overall. RailTel handles the telecom division of the Indian Railways. The RailTel IPO will close for subscription on 18 February.

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