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MUL IPO oversubscribed
New Delhi, June 12: The much-hyped mega public issue of the auto leader Maruti Udyog for sale of 7.2 crore shares was today oversubscribed within three hours of its opening.
New Delhi, June 12: The much-hyped mega public issue of the auto leader Maruti Udyog for sale of 7.2 crore shares was today oversubscribed within three hours of its opening.
The Initial Public Offer for divestment of government`s 25 per cent equity in the car joint venture with Japan`s Suzuki Motor Corporation would remain open for offers till June 19 as scheduled, sources close to the disinvestment process said.
Dubbing the response as `overwhelming and unprecedented`, they said the allocation of shares to qualified institutional buyers, high networth investors (those individual buyers who place orders in excess of 1000 shares) and retail investors would be decided later.
As of now the company would have to keep at least 25 per cent of shares for retail investors and a minimum of 15 per cent for high networth investors, sources said adding that qualified institutional buyers were subjected to a ceiling of 60 per cent equity put on the block.
They clarified that retail investors could be considered for larger quantum of equity in case there was demand keeping in view the objective of making mul as broad based company as possible,
The response to the offer with a floor price of Rs 115 a share has prompted the officials associated with the process to speculate that the over-subscription could be as high as ten times by the time the issue, being done through book building route, closes on June 19.
The SMC had agreed to underwrite the IPO at Rs 2300 a share of Rs 100 but the company had gone for a share split to break each share into 20 of Rs five each which established a floor price of Rs 115 a share.
Bureau Report
Dubbing the response as `overwhelming and unprecedented`, they said the allocation of shares to qualified institutional buyers, high networth investors (those individual buyers who place orders in excess of 1000 shares) and retail investors would be decided later.
As of now the company would have to keep at least 25 per cent of shares for retail investors and a minimum of 15 per cent for high networth investors, sources said adding that qualified institutional buyers were subjected to a ceiling of 60 per cent equity put on the block.
They clarified that retail investors could be considered for larger quantum of equity in case there was demand keeping in view the objective of making mul as broad based company as possible,
The response to the offer with a floor price of Rs 115 a share has prompted the officials associated with the process to speculate that the over-subscription could be as high as ten times by the time the issue, being done through book building route, closes on June 19.
The SMC had agreed to underwrite the IPO at Rs 2300 a share of Rs 100 but the company had gone for a share split to break each share into 20 of Rs five each which established a floor price of Rs 115 a share.
Bureau Report