Big response: Cochin Shipyard's IPO subscribed over 76 times
By Express News Service | Published: 04th August 2017 08:10 AM |
KOCHI: The Cochin Shipyard Ltd (CSL) IPO, which concluded on Wednesday, became one of the most successful share offerings in recent times with the IPO subscribing by 76.11 times.
In simple terms, this means for the Rs 1,468.10 crore worth shares on offer, the public sector ship builder received bids worth a staggering Rs 11,737. 7 crore!
The IPO’s saddest part was the disinterest shown by majority of the CSL’S 1,800-strong workforce to the proposal to own part of the company. As per the details available with the stock exchange, a mere 49 per cent of the shares set aside for the employees found takers. A total of 8.24 lakh shares was earmarked for the employees. Following the lukewarm response from them, over 4.12 lakh shares will go to other investors who are sure to make big gains at the time of listing of the shares on stock exchanges viz., Bombay and National Stock Exchange.
The shares will be listed on August 11, and it is expected those who get IPO allotments will make a windfall on the listing day itself. Stock market dealers said the CSL shares command a premium of over Rs 150/share in the unofficial or the grey market.The CSL IPO was priced in the range of Rs 424-432 per share. Going by the grey market price, the CSL should list on the stock market at Rs 582/share. If this is proved true, then the employees will collectively lose Rs 7 crore profits in a matter of just eight days. The employees and retail investors will get the CSL shares at a discount of Rs 21/share from the final price, which is likely to be Rs 432/share.
This is similar to Coal India IPO in 2010 when employees lost huge profits by refusing the IPO of the public sector coal miner.As per the final figures available, the portion of shares earmarked for Non Institutional Investors (NIIs) saw the biggest response - 288.97 times. A total of 49.74 lakh shares were reserved for NIIS. The Qualified Institutional Buyers’ (QIBs) portion, where 1.66 crore shares were reserved, was subscribed by 63.52 times. The retail or small investors too bid aggressively on the last and final day. The retail segment was subscribed by 8.28 times for the total of 1.16 crore shares reserved for them. The IPO received 20.07 lakh applications by 7 pm on Wednesday.