Provogue issue puts margin funding out of vogue

(RS)

Yes bank

Provogue

Issue price

45

150

Margin (Rs)

4.5

15

Loan amount

40

135

Interest rate

0.15

0.15

# days for finance

15

15

Interest per share for 15 days

0.29

0.84

If oversubscribed (# times)

Cost per share (Rs)

5

1.44

4.220

15

4.32

12.66

25

7.190

21.09

35

10.07

29.53

45

12.95

37.97

46 (Yes Bank, overall)

13.23

38.81

70 (Provogue, overall)

20.14

59.06

167 (Provogue, HNI)

48.04

140.91

 The HNI category was oversubscribed by an astounding 167 times, while the retail portion was oversubscribed about 25 times. The overall issue was oversubscribed about 70 times.  The Provogue issue was for a total of 40.49 lakh shares and was offered between Rs 130 and Rs 150. The total number of bids for the issue stood at 10 crore shares. At the cut-off price of Rs 150 itself, there were total bids for 3.83 crore shares.  High oversubscription is usually good news for investors since it means that the demand for the issue is good in relation to the supply. Large oversubscriptions, however, also mean lower allotments which invariably push the break-even level beyond what may be recoverable even as the issue lists at a substantial premium.