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Navkar's IPO sails through; over-subscribed 2.8 times

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Press Trust of India New Delhi
Last Updated : Aug 26 2015 | 7:22 PM IST
The Rs 600-crore initial public offering (IPO) of logistics company Navkar Corporation was over-subscribed by 2.8 times today, the last day of subscription.
While, IPOs of Shree Pushkar Chemicals and Fertilisers and Pennar Engineered Building Systems witnessed a subscription of 46 per cent and seven per cent, respectively, on the second day of their issues.
The over-subscription of Navkar's IPO assumes significance amid huge sell-off in domestic markets, triggered by Chinese rout.
The IPO received bids for over 8 crore shares as compared to 2.86 crore equity scrips on offer, translating into a subscription of 2.8 times, according to data available with the National Stock Exchange (NSE) till 1700 hours.
The bidding for the IPO, which started on August 24, would conclude today. The price band for the issue has been fixed at Rs 147-155 per share.
Retail portion got a subscription of 60 per cent, while Qualified Institutional Buyers (QIBs) and non-institutional investors categories were subscribed by 19 per cent and two per cent, respectively, till yesterday.

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Maharashtra-based Navkar plans to mobilise up to Rs 510 crore by issuing fresh equity shares and rake in up to Rs 90 crore through sale of existing shares.
According to market experts, Navkar's IPO managed to get over-subscribed on the final day, while the public offers of Shree Pushkar and Pennar are facing the heat due to volatile stock markets.
The upcoming IPOs may also be impacted but companies with attractive valuations and sound financials would manage to get through, they added.
With regard to public offer of Shree Pushkar, it got bids for over 53 lakh shares as against 1.15 crore equity scrips on offer.
The company aims to raise Rs 70 crore by issuing fresh shares as well as an offer for sale of 20,26,589 shares. It has set a price band of Rs 61-65 per share.
Pennar's IPO has received bids for over 4.17 lakh shares as against an offer of 62.95 lakh equity scrips.
The firm is aiming to garner Rs 156 crore through fresh issue of shares and an offer for sale by private equity investor Zephyr Peacock and others. It has fixed a price band of Rs 170 to Rs 178 for the IPO.
These two public offers are scheduled to close tomorrow.

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First Published: Aug 26 2015 | 7:22 PM IST

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