HUDCO IPO Sees Record Oversubscription Of Rs 97,000 Crore
HUDCO IPO was subscribed more than 79 times.
The Rs 1,200-crore initial public offer (IPO) of Housing and Urban Development Corporation Ltd. (HUDCO) has received bids worth Rs 97,000 crore, recording the highest over subscription in any public-sector unit’s disinvestment, the government said on Friday.
This is the first IPO of a central public sector enterprise since April 2012. The HUDCO issue saw an “exceptional level” of interest and was oversubscribed by more than 79 times.
“Bids worth Rs 97,000 crore were received for an issue size of Rs 1,200 crore. This is the highest level of over subscription witnessed in a divestment by Government of India through IPO route,” a finance ministry statement said.
The HUDCO IPO was open for subscription from May 8 to May 11. A total of 20.4 crore shares were offered by the government, including employee reservation of 38.7 lakh shares and 50 percent of the net offer being reserved for qualified institutional buyers (QIB).
The QIB category was subscribed more than 55 times with about 38 percent demand from foreign institutional investors.
The non-institutional investor category was subscribed more than 330 times. The retail category also saw a strong demand of more than 10 times.
“The IPO received more than 20 lakh applications, which is the highest number of applications received in an IPO after Security and Exchange Board of India made mandatory use of applications supported by blocked amount (ASBA) mode for all categories of investors,” the statement said.