PC Jeweller IPO subscribed 2% on first day

The initial public offer (IPO) of PC Jeweller got subscribed just 2% today, with only retail investors showing interest on the first day of the issue.

The Rs 609 crore IPO attracted bids for 6.38 lakh shares, as against 3.84 crore shares on offer by 1700 hrs, as per data available with the National Stock Exchange.

About 4% of the total shares reserved in the retail investor category got subscribed, while those in the institutional and other slots had not attract any interest till then, the NSE data showed.

Shares reserved for the Qualified Institutional Buyers (QIBs) are 1.56 crore; retail (1.56 crore) and non- institutional investors (67.16 lakh).

The company has fixed the price band of IPO at Rs 125-135 per share, having a face value of Rs 10 each. The public issue will close on December 12.

At the upper band, PC Jeweller would raise a little over Rs 609 crore through IPO, while at lower band, the company would mop up Rs 564 crore.

The company has 30 showrooms across the country and it has plans to open 20 new retail showrooms by utilising funds raised through IPO.

The Delhi-based jeweller had posted a turnover of about Rs 3,000 crore in 2011-12 fiscal.

The shares are proposed to be listed on the National Stock Exchange (NSE) and the BSE.

The book running lead managers to the IPO are SBI Capital Markets and Kotak Mahindra Capital Company and the co-book running lead manager is IDBI Capital Market Services.