GPPL's Rs 500cr IPO gets huge demand;oversubscribed 19.4 times | business | Hindustan Times
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GPPL's Rs 500cr IPO gets huge demand;oversubscribed 19.4 times

business Updated: Aug 26, 2010 22:47 IST

PTI
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Gujarat Pipavav Port Ltd's public offering received an overwhelming response from the investors and was oversubscribed 19.46 times by the end of issue today.

The initial public offer (IPO), through which the private port developer aims to raise Rs 500 crore, received an overwhelming response from retail, HNIs as well as institutional buyers.

The IPO got total demand for over 214.92 crore shares as against 11 crore equities on offer for public, as per the data available with the National Stock Exchange.

Retail portion was oversubscribed 4.67 times and in high networth individuals category by a huge 87.5 times, merchant banking sources said.

In the portion reserved for the Qualified Institutional Buyers, the issue got subscribed 13.2 times over. Bidding was closed yesterday for institutional investors. The issue opened on August 23.

GPPL has entered the capital market with its IPO priced in the range of Rs 42-48 a piece.

Analysts said that going by huge response, the IPO issue price may be fixed at the upper end of price range.

According to merchant bankers involved in the issue, the listing of GPPL may happen by mid-September.

The firm has already raised Rs 92 crore by roping in 20 anchor investors, that includes Govt of Singapore, HDFC MF and DSP Blackrock.

Some other major anchor investors include, HDFC MF, Tata MF, Goldman Sachs, Deutsche Securities and JM Financial MF.

At the lower end of the price band the company will sell 11.94 crore shares, while at the upper end it will sell 10.42 crore shares. Apart from this, 1.17 crore shares will be sold by an existing investor.