Parsvnath IPO oversubscribed nearly 4 times

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Investors continued to subscribe to the public offers of real estate major Parsvnath Developers and infrastructure development firm Lanco Infratech, on the second day on Tuesday, reports The Economic Times.

The Parsvnath IPO was oversubscribed nearly four times, receiving bids of over 12 crore shares for a total of 3.32 crore shares on offer.

The offer is getting good response from qualified institutional buyers specially from foreign institutional investors. This is the first time when FIIs have got an opportunity to participate in the IPO of a pure-play Indian real estate company, the merchant bankers said.

Lanco, also gained momentum on the second day and received bids for nearly two times of the total issue size of 4.44 crore shares.

Both the issues, scheduled to close on November 10, witnessed impressive response from institutional investors, while bidding from retail investors was lukewarm.

The two IPOs could get further momentum in the coming days when retail investors would start bidding after seeing the robust response from institutional investors, analysts said.

Parsvnath Developers has hit the capital market with a public issue of 3,30,38,000 equity shares with a price band of Rs 250-300 per share.

The company plans to deploy the IPO proceeds for its various ongoing projects across India.

Lanco, an infrastructure development company with interests in power generation, construction and property development, has fixed the price band at Rs 200-240 per share and five lakh shares have been reserved for employees.