The Popular Vehicles and Services IPO continued to get muted response from investors even on the second day of bidding, March 13. The sharp correction in broader markets on overvaluation concerns may be impacting the subscription numbers.
The Rs 601.55-crore public issue has been subscribed 45 percent with investors buying 65.33 lakh equity shares against offer size of 1.44 crore equity shares, as per the subscription data published by exchanges.
Retail investors so far picked 78 percent shares of the reserved portion and non-institutional investors bought 20 percent shares of the part set aside for them, while qualified institutional buyers bid 0.15 percent shares of the allotted quota.
Only employees of the company looked aggressive in bidding, as they bought 6.16 times the portion set aside for them.
The Kerala-based automobile dealer has reserved Rs 1 crore worth of equity shares for its employees who will get those shares at a discount of Rs 28 per share to the final IPO price.
Also read: Gopal Snacks IPO: A muted debut likely amid small and midcap selloff
The Popular Vehicles & Services IPO was subscribed 27 percent on the first day of bidding, March 12. The issue, with a price band at RS 280-295 per share, will close on March 14.
The IPO is a mix of fresh issuance of equity shares worth Rs 250 crore by the company, and an offer-for-sale of 1.19 crore equity shares worth Rs 351.55 crore by private equity fund BanyanTree Growth Capital II, LLC.
Also read: Hospital chain Paras Healthcare plans Rs 1,000 crore IPO; PE firm Creador to exit
The company will use Rs 192 crore out of the net fresh issue proceeds for repaying debts, and the remaining funds for general corporate purposes.
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