Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

IndoStar Capital Finance IPO Subscribed 0.41 Times On First Day Of Bidding

Day 1 Subscription

  • Qualified institutional buyer: 1.29 times
  • Non-institutional investor: Nil
  • Retail investor: 0.08 times
  • Overall: 0.41 times

Non-banking financial company IndoStar Capital Finance Ltd.’s Rs 1,844-crore initial public offering subscribed 41 percent on the first day of bidding today.

The portion reserved for qualified institutional buyers was subscribed 1.29 times the number of shares on offer, according to data provided by JM Financial as of 5 pm. Demand from retail investors remained muted with shares allotted to them subscribed 0.08 times, while the portion for high net worth individuals did not receive any bids.

A consortium led by Everstone Group is eyeing a partial exit through the maiden offer. The IPO includes a fresh issue of Rs 700 crore and an offer for sale by existing investors to the tune of Rs 1,144 crore. The price band has been fixed at Rs 570-572 apiece.

After the offer, the promoter shareholding will fall to 58.95 percent from 91.5 percent. The rest will be with public.

On Tuesday, IndoStar Capital Finance raised Rs 553 crore by allocating 96.7 lakh shares to 24 anchor investors.