Angel Broking IPO Subscribed 0.77 Times On First Day
Early demand for the IPO was led by retail investors.
The initial public offering of Angel Broking Ltd. was subscribed 0.77 times on the first day of bidding, with retail investors making the bulk of the purchase.
The Rs 600-crore offer received bids for 1.05 crore shares as against the 1.27 crore shares up for sale, according to data available with Axis Capital. Demand was high in the portion reserved for retail investors which was subscribed 1.46 times the shares on offer.
Non-institutional investors bid 0.16 times on shares allocated for them, while institutional buyers have not made any bid so far.
The Mumbai-based full-service retail broking firm plans to raise Rs 600 crore by selling up to 1.96 crore shares at Rs 305-306 per share with the minimum bid size of 49 shares and multiples.
The company, in its red herring prospectus, said that the IPO comprises a fresh issue and an offer-for-sale by its promoters International Finance Corp., and other shareholders.
The broker said it would use the offering’s proceeds to meet working capital requirements and general corporate purposes.