The initial public offer of ARSS Infrastructure generated a robust demand on the final day of the offer today with investors bidding for over 47 times the shares on offer.
The issue received bids for over 11.89 crore shares, against 25.12 lakh shares on offer, thereby garnering a demand of 47.34 times the shares on offer, as per data available with the National Stock Exchange.
Analysts feel in the current IPO market condition, such a huge investor demand is quite surprising and said it could be because the company is operating in the infrastructure space.
"There was a sudden rush of application on the final day. At a time when most of the IPOs are managing 4-5 times subscription, a 47-times demand is good enough," SMC Capitals Equity Head Jagannadham Thunuguntla said.
The company, aims to mop up over Rs 113 crore from the offer, has fixed a price band at Rs 410-450 a share.
At the end of final day, the investor demand stood at Rs 5,352 crore, calculated at the upper end of the price band.
According to market sources, the portion reserved for QIBs was subscribed nearly 40 times, while non-institutional investors bid for over 70 times the shares reserved for them. In comparison, retail demand remained somewhat muted as they bid for over nine times the shares reserved for them.
