 "E-commerce boom spurs record demand for VRL Logistics IPO")
A $75-million market debut for Indian parcel delivery firm VRL Logistics Ltd has encountered record demand, drawing bids for more than 70 times the number of shares on offer late last week, as investors bet on an e-commerce boom.
Subscription levels were the highest in nearly eight years, stock exchange data showed, roughly the highest since the global financial crisis hit.
Analysts said strong demand was helped by the successful listing of renewable energy firm INOX Wind , which has lifted primary market sentiment, and growing demand for logistics services as Indians buy more online.
The sale received bids amounting to 74.26 times the number of shares on offer by the last day on Friday, stock exchange data showed.
The qualified institutional buyers (QIBs) category was subscribed 58.22 times, while the non-institutional investors' portion was subscribed 250.86 times.
Previous record IPO subscriptions include those of Power Finance Corp , subscribed 77.2 times in 2007 and Reliance Power , subscribed 73 times in 2008.
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VRL competes with companies including Gati Ltd and Transport Corporation of India Ltd .
Rival Gati is also planning to launch a share sale, via advisor Motilal Oswal, to raise nearly $20 million, two sources directly involved told Reuters.
ICICI Securities and HSBC Securities and Capital Markets (India) Private Ltd were the advisers for the VRL Logistics share sale.