NEW DELHI: Led by Tata Technologies Ltd, India’s IPO market is going through one of its best times ever. Three IPOs - Tata Tech, Gandhar Oil and Flair Writing – were fully subsidised on the first day of bidding on Wednesday. The Rs 2,150 crore public issue of state-owned Indian Renewable Energy Development Agency (IREDA) received 4.56 times subscription on the second day of bidding.
The response to Tata Technologies’ IPO, the first one to hit the capital market from Tata Group in 20 years, was such that the issue was fully booked within 30 minutes of opening, with qualified institutional buyers (QIBs) and non-institutional investors (NIIS) taking the lead. The issue was well received by retail investors as well. Investors bought 29.49 crore equity shares on day 1 against an offer size of 4.5 crore. Retail investors bought 5.44 times of their allotted quota of shares, while the portion for high-networth individuals (HNIs) was booked 11.69 times and qualified institutional buyers (QIB) bid 4.08 times.
On Tuesday, Tata Technologies, an engineering services company, raised Rs 791 crore from 67 investors via anchor book. The funds were raised at the upper limit of the Rs 475-500 price range. The issue of Gandhar Oil Refinery India was fully subscribed within 60 minutes of opening and by the end of Day 1 it was subscribed 5.54 times. The retail quota was subscribed 6.92 times, while the NII portion garnered 7.70 times bids. The IPO of Flair Writing Industries was subscribed fully by noon. “The issue (Tata Tech) is asking for a market cap of Rs 20,283 crore with P/E of 29x on consolidated basis, which seems the issue is reasonably priced,” said Prashanth Tapse, research analyst at Mehta Equities.
