Sobha IPO subscribed 104 times

The two initial public offerings (IPOs) that closed on Wednesday met with completely different fortunes "� one was an overwhelming success while the other managed to just scrape through.

The Bangalore-based Sobha Developers got subscribed 104 times while the other IPO by Ruchira Papers, a company engaged in manufacturing kraft paper for the packaging industry, was subscribed 2.45 times.

Meanwhile, the IPO by LT Overseas, which is closing tomorrow, is subscribed 2.22 times with retail portion receiving only 0.24 times subscription.

Sobha Developers, which is issuing 88.93 lakh shares at a price band of Rs 550-640 per share, expects to mobilise anything between Rs 490 crore to Rs 570 crore through the IPO.

The IPO was able to get 164 times subscription from qualified institutional buyers (QIBs), of which a large chunk came from foreign institutional investors (FIIs).

The retail portion of the IPO saw 17 times subscription. At lower price band, the company received applications for Rs 50953.1 crore worth shares.

In contrast, it was not an easy ride for Ruchira Papers. The retail portion of the IPO went under subscribed by 0.4 times, as per the data available with National Stock Exchange. The QIB portion has been subscribed 1.62 times but the IPO did not receive even a single application from FIIs.

"Investors are becoming very choosy. They are in a position to differentiate between the good and the bad," said another analyst with a local brokerage outfit.