The Popular Vehicles and Services IPO was fully subscribed on the final day of bidding on March 14 as qualified institutional buyers (QIBS) provided major support to the issue picking 1.97 times the allotted quota.
Overall, the public issue has been subscribed 1.23 times with investors buying 1.78 crore equity shares against an offer size of 1.44 crore shares, according to the subscription data published by exchanges.
Retail investors bid 1.05 times the allotted quota, which is much lower than their support for the previous public issues in the current month, while non-institutional investors bought 0.66 times the portion set aside for them.
Employees remained ahead, buying 7.59 times the reserved portion. The automobile dealer has reserved Rs 1 crore worth of shares for its employees, which will be issued at a discount of Rs 28 per share to the final issue price.
The price band for the public issue, which was opened on March 12, is Rs 280-295 per share.
Also read: Manba Finance files draft papers with SEBI for IPO
Kerala-based Popular Vehicles intends to mobilise Rs 601.55 crore through its initial public offering, comprising a fresh issue of shares worth Rs 250 crore and an offer-for-sale of 1.19 crore equity shares worth Rs 351.55 crore.
The company will finalise the basis of the allotment of IPO shares by March 15, while the equity shares will be credited to the demat accounts of successful investors by March 18.
The participants can start trading in Popular Vehicles and Services equity shares on the BSE and NSE from March 19.
Also read: Transrail Lighting files IPO documents; fresh issue size Rs 450 crore
Meanwhile, its IPO shares were not attracting any trading premium in the grey market, an unofficial platform wherein IPO shares can be bought and sold till the listing, the market observers said.
The sharp downfall in the broader markets space in the recent past after the overvaluation concerns raised by the capital markets regulator may be a key reason for the absence of grey market premiums for Popular Vehicles.
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