The initial public offer of Jaypee Infratech was subscribed 1.24 times by the end of the issue today, but response from retail investors was lukewarm.
The IPO got maximum demand from qualified institutional buyers and was subscribed 1.77 times in the portion reserved for them, as per the latest data available with the National Stock Exchange (NSE).
Qualified institutional buyers include insurance firms, mutual fund houses and foreign institutional investors. In the HNI segment, the public issue was subscribed 1.15 times, whereas shares reserved for retail buyers and employees remained under-subscribed.
In the retail segment, the IPO got subscribed 61 per cent, while in the employees' portion, it was subscribed just 10 per cent. In total, the issue received bids for 27.39 crore shares against 22.17 crore equities on offer, as per the NSE data.
Jaypee Infratech had come out with a public issue in the price range of Rs 102 to Rs 117. The IPO opened on April 29, the same day when the issue of state-run SJVNL was launched.
SJVNL's Rs 1,000-crore IPO, which closed on Monday, was subscribed 6.6 times. Through this public issue, the company intends to raise between Rs 2,262 crore and Rs 2,352 crore.
However, Jaypee Infratech will receive Rs 1,650 crore out of the total proceeds and the balance will go to its holding company, JP Associates Ltd (JAL).
Jaypee Infratech was incorporated in 2007 and is engaged in the development of the Yamuna Expressway and other related real estate projects. The 165 km-long, 6-lane Yamuna Expressway will connect Noida and Agra, in Uttar Pradesh.
Morgan Stanley India Company, DSP Merrill Lynch, Axis Bank, Enam Securities, ICICI Securities, IDFC Capital, JM Financial Consultants, Kotak Mahindra Capital Company and SBI Capital Markets were the book running lead managers to the issue.