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Bharti Infratel IPO subscribed 35% on Day 2

13 Dec 2012
The Rs 4,500 crore Initial Public Offer (IPO) of the tower arm of India’s largest wireless telecom company got 35 per cent subscribed on Day 2, after meeting a muted response from investors on the first day.

As per NSE data, Bharti Infratel received bids for 5.59 crore shares till December 12 as against 18.89 crore equity shares on offer.

Besides, the category of Qualified Institutional Buyers (QIBs) got 44 per cent subscribed by the end of Day 2 while retail investors’ category got 2 per cent subscription only.

Experts said that most of the investors come in on the last day of the issue, which is December 14. They said that many high net-worth individuals (HNIs) might be waiting on the sidelines and may rush on the last day to invest.

The company has set a price band of Rs 210-240 per share, where at the upper end it could raise about Rs 4,533.60 crore, while at the lower end it could end up with Rs 3,966.90 crore.

The issue has been assigned a 4/5 graidng by Crisil which indicates that fundamentals of the company are above average.

While some analysts believed that issue was fairly priced, others said that it could have been priced at a discount to its global peers given low-entry barriers in this business.

The joint book running lead managers to the IPO are DSP Merrill Lynch, JP Morgan India, Standard Chartered Securities (India) and UBS Securities India.
Source: Dion Global   Type: IPO Related