Indian Bank IPO evokes lukewarm response from employees, receives subscription for 32.16 times

The Initial Public Offering (IPO) of Indian Bank has received subscription for 32.16 times, but the quota reserved for employees evoked lukewarm response failing to receive full subscription.

The IPO of State owned bank opened for subscription on February 5, 2007 and closed on February 9, 2007. The Bank came out with a 100% book building issue of 8,59,50,000 equity shares each of Rs.10 at a price band of Rs.77 to Rs.91.

Out of the issue, 46413000 equity shares were reserved for bidding by Qualified Institutional Bidders(QIBs), 7735500 equity shares were reserved for Non Institutional Investors, 23206500 equity shares were reserved for Retail Individual Investors (RIIs) and 8595000 for employees of the bank.

The issue which closed on Friday has received oversubscription of 31.16 times. The QIBs portion of the issue received subscription for 56.4475 times (2619896400 shares), Non Institutional Investors portion for 8.3555 times (64633650 shares) and Retail Individual Investors portion for 3.1830 times (73867050 shares).

Whereas, the portion of shares reserved for employees of the bank received lukewarm response failing to receive even full subscription. The employees quota received a demand of 5411925 equity shares equal to 0.6297 times of the equity shares offered to them.

SBI Capital Markets Ltd, Enam Financial Consultants Pvt. Ltd, ICICI Securities Ltd and Kotak Mahindra Capital Co. Ltd were the Book Running Lead Managers to the issue. CAMEO Corporate Services Ltd is the Registrar to the Issue.

The company's website is Indian Bank

Source : Equity Bulls

Keywords