The initial public offering of transport firm VRL Logistics was over-subscribed 1.94 times of the issue size on the second day on Thursday. The public offer received bids for 3,15,10,440 shares against the total issue size of 1,62,69,006 shares of the second day of the offer, reflecting a subscription of 1.94 times, stock exchanges' data showed.
The qualified institutional buyers (QIBs) category was subscribed 1.27 times and the non-institutional investors portion received 1.82 times subscription.
Retail investors category got subscribed 2.38 times. The bidding for shares in the IPO will close tomorrow. VRL Logistics is the fourth company to hit the capital market with an IPO this year.
The IPO constitutes a fresh issuance of Rs 117 crore worth of equity and an offer for sale of 1.71 crore shares by NSR-PE Mauritius LLC and the promoters' family. The company has fixed a price band of Rs 195-205. At the issue size of 1,62,69,006 shares, the company would raise over Rs 333 crore at the upper band.
The proceeds will be utilised for expanding the company's existing fleet of goods transportation vehicles, repayment of loan and for other general corporate purposes. Post IPO, promoters' stake will come down to 69-70 percent while 25 percent will be held by the public and the rest 5 percent by investors. The shares are proposed to be listed both on the BSE and the NSE.
The issue is being managed by ICICI Securities Limited and HSBC Securities and Capital Markets (India) Pvt Ltd. This is the company's second attempt to enter the capital markets. Earlier, in December 2010, the Karnataka-based company had filed draft documents with Sebi for an IPO of 2.35 crore shares.
VRL, with a total fleet of over 3,400 vehicles, employs about 15,000 people. It provides luxury bus service in Karnataka, Maharashtra, Goa, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat and Rajasthan.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
