Oberoi Realty's initial public offer (IPO) got a robust demand from investors and was subscribed 12.07 times on the final day today --clearly the best response to issues by any real estate companies in the past 3 years.
As per the latest data (till 1700hrs) available with National Stock Exchange, the issue received a total demand for over 39.1 crore shares against 3.24 crore equities on offer.
Primary market analysts said Oberoi Realty's subscription demand breaks the three-year record.
There were three realty IPOs this year so far. DB Realty was oversubscribed 2.63 times, Nitesh Estates 1.13 times and Vascon Engineers 1.16 times.
Godrej Properties IPO was oversubscribed by 3.56 times last year. No real estate company came up IPO in 2008.
Analysts said the appetite shown for Oberoi IPO is likely to encourage some other realty firms to hit the market with their public issues.
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Waiting in the wings are Kumar Urban Development, Lodha Developers, Raheja, Universal and BPTP, among others.
The Mumbai-based Oberoi Realty's issue, which opened on October 6, is priced in the range of Rs 253 to Rs 260 per share. Final break figues of the IPO demand was not available till 1800 hours on NSE.
At the upper end of the price band, the realtor will be able to raise up to Rs 1,028.61 crore, while at the lower end the IPO is valued worth Rs 1,000 crore.
The company has raised Rs 185.15 crore by roping in 19 anchor investors, including T Rowe Price, ICICI Pru and Reliance Capital.
The company has finalised the issue of 71,21,160 equities to 19 anchor investor funds at a price of Rs 260 a share-- the upper end of its IPO price band.
Kotak Mahindra, Enam Securities, Morgan Stanley India and JP Morgan India are book-running lead managers to the issue.