New Delhi, Nov 30: The Initial Public Offer (IPO) of Indraprastha Gas Ltd (IGL), the sole supplier of Compressed Natural Gas (CNG) in the national capital, has been over- subscribed by 2.7 times. IGL issue, which opened on November 28, received bids for 108.35 million shares against the offer of 40 million equity shares, according to the Bombay Stock Exchange website.
The maximum number of 105.02 million bids were received on the ceiling price of the Rs 40 to 48 price band fixed for the IPO being done through the book-building route.
In all 105,026,700 shares had been sought at Rs 48 while at Rs 40, 16,600 shares have been bid for. 2,753,100 equity shares were requested at Rs 47 while the least number of 1,300 shares had been sought at Rs 42. Interestingly, 539,000 shares have been bid by investors at the 'best price'. Here the investor has not quoted any specific price but is willing to buy the shares of the company at whatever price the company fixes as the cost price subsequent to close of book building process.

At Rs 41, requests for 3700 shares was received, 2600 shares were sought at Rs 43, 3900 shares at Rs 44, 3200 shares at Rs 45 and 4800 shares were requested at Rs 46.

The IPO, where financial institutions are offloading 28.6 per cent of their equity shares, closes on December 5 and does not have any green-shoe option, that is to say the equity offloaders do not wish to retain any over-subscription. Based on the Rs 40 to Rs 48 price band, the IPO will fetch in the range of Rs 160 to 192 crore for financial institutions -- IL&FS, IDFC and UTI -- who are offloading 28.57 per cent of their current 50 per cent stake in IGL through the IPO.
Bureau Report