MOIL IPO Retail Portion garners subscription of more than 14 times

The Initial Public Offering (IPO) of MOIL Limited has received unprecedented demand from Retail Individual Investors also, with the retail portion receiving subscription of more than 14 times till 12:00 Noon on December 1, 2010.

The issue has received bids for 149087994 equity shares at cut-off price as of 12:00 Noon on December 1, 2010. The QIBs portion which closed for subscription on November 30, 2010 has received subscription of 49.16 times.

The Retail Portion of the IPO has received subscription of nearly 13 times at cut-off price itself till 12:00 Noon. The Retail Individual Investors (RIIs) can place price bids as well. With the addition of price bids with bids at cut-off price, the issue has received more than 14 times subscription.

The huge oversubscription in retail portion will make allotment of shares as lottery. The Maximum Subscription Amount by Retail Investors have been increased to Rs.200000 recently by SEBI and this has enabled more high networth individuals to opt for subscription through retail portion as the allotment will be more or less the same if an investor applies for Rs.10 lakhs in Non Institutional Investors Portion and if the same investor opts for Rs.2 lakhs investment through Retail Individual Investors (RIIs) portion.

The Retail Individual Investors (RIIs) portion of the issue is nearly 35% of the overall issue as compared to 15% of the overall issue for Non Institutional Investors.

Source : Equity Bulls

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