The ongoing initial public offers (IPOs) are witnessing overwhelming response from investors with toll road operator IL&FS Transportation issue subscribed 33 times and home linen maker Pradip Overseas subscribed 14.5 times.
On the final day of the issue, IL&FS Transportation received bids for over 790 million shares against the issue of over 23.71 million shares. Bids for over 30.35 million shares were received at the cut-off price. IL&FS Transportation, which had announced a price band of Rs 242-258 per share, will raise around Rs 700 crore at the upper price band. Around Rs 530 crore raised from the IPO will be used for repayment of half of its debt and the rest for new projects.
Based on the subscription, the issue has received bids for over Rs 20,000 crore, much higher than the bids for NMDC FPO.
The book running lead managers to the issue are Enam Securities, Nomura Financial Advisory and Securities and JM Financial. The co- book running lead managers to the issue are SBI Capital Markets and Avendus Capital.
Pradip Overseas received bids for over 148 million shares out of which bids for 3.30 million shares were received at the upper end of the price band. The firm is selling 10.06 million shares at a price band of Rs100-110 a share. At the upper end of the price band, the company will raise up to Rs 117 crore. The company, involved in production of home Lenin, will use the proceeds to part finance a manufacturing facility in a textile SEZ. This facility will be ready by March 2011. Anand Rathi Advisors is the sole book running lead manager to the issue.
