| The poor response "" one of the lowest in the recent past "" was a fallout of twin factors: the bloodbath on Dalal Street today and the system of compulsory payment of margin money by the qualified institutional bidders (QIBs) applying for IPOs. |
| According to the data released by the National Stock Exchange, the combined applications received by both the BSE and NSE stood at 3.55 lakh shares. The aviation company is offering 2.45 crore equity shares through the book-built issue. |
| Merchant bankers associated with the issue were, however, not perturbed by the poor show. "It's only expected that no investor would like to lock in funds in the current volatile market. It makes sense for them to bid towards the closure of the issue," one of them explained. |
| Bankers also pointed out the outlook of the issue was bright. "The road shows of the issue abroad received good response," a merchant banker said. |
| Several analysts pointed out the response to the QIB portion today was one of the worst ever seen in the recent past. |
| "The QIBs had been putting in their bids towards the closure of the issue ever since Sebi made the payment of margin money compulsory. However, this issue, perhaps, received the lowest ever response on day one from them," an analyst said. |
| Normally, retail investors participate in the last three days of any IPO. Of the 3.55 lakh bids received, 3.09 lakh bids have been made at the cut-off price. The issue is priced between Rs 150 and Rs 175. It closes on May 23. |
| The company proposes to raise Rs 368.19-429.55 crore through this issue. |
| The issue will constitute 25 per cent of the fully diluted post-issue paid-up capital of the company. Enam Financial Consultants Private and ICICI Securities are book-running lead managers for the issue. |
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