The Rs 270-crore maiden public offer from Hindustan Media Ventures generated good demand on the final day of the issue and was oversubscribed 5.43 times, with retail investors fully subscribing their portion.
The initial public offer of Hindustan Media Ventures (HMVL), the publishers of Hindi daily Hindustan, got bids for over 7.50 crore shares, out of a total of 1.38 crore equities on offer, thus getting subscribed 5.43 times, as per NSE data.
Among the portion reserved for qualified institutional buyers, which includes MFs, FIIs and insurance firms, the issue generated demands for nearly 9 times, while among the non-institutional investors category (HNIs), the issue was subscribed 3.39 times, while the retail portion was snapped up double the issue on offer, as per the NSE data.
Investment banking sources said fund houses like Canara Robeco, Reliance Capital, SBI, Birla Sun Life and Lloyd George Investment made bids for the issue.
After a relatively slow response for the first two day of the issue, the offer attracted heavy participation from investors on the final day.
"Due to a recent Sebi provision for making 100 per cent upfront payment by institutional investors,(earlier they had to pay only 10 per cent) they prefer to wait for the last day for an IPO," SMC Capitals' Jagannadham Thunuguntla told PTI.
Most bids came in the range of Rs 162-166,and analysts believe that the issue price may be fixed in this range. The issue, opened on July 5, is priced in the Rs 162-175 range.
The company plans to raise Rs 270 crore from the float and the proceeds will be used for expansion and to retire debt.
Ahead of the issue, the company had roped in 13 anchor investors, including Reliance Capital Trustee Co and SBI, to whom about 27.78 lakh shares would be allocated at a price of Rs 166 per share, aggregating Rs 46.10 crore.
A 98.85 per cent subsidiary of HT Media that publishes the Hindustan Times and Mint, Hindustan Media Ventures publishes the third largest Hindi daily Hindustan which had a readership of 9.9 million (as per IRS 1, 2010).It also publishes two Hindi magazines Nandan and Kadambini.
Despite a weak broader market,the HT Media counter closed 2.4 per cent up today at Rs 152.75 on the BSE. The broader Sensex finished at 17,471, down by 143 points.
The IPO is carried out through a 100 percent book-building route, and shares offered through the issue are proposed to be listed on the NSE and the BSE. Edelweiss Capital and Kotak Mahindra Capital are the book-running lead managers to the issue.