The Hindu Business Line : 68% retail investors to get IPCL allotment

ALLOTMENT to the retail investors in the IPCL issue has been pegged at around 68 per cent of total applicants. In the case of high net worth individuals, 100 per cent allotment has been made, according to a spokesperson from Kotak Mahindra Capital Company, one of the lead managers to the issue. The issue closed on February 27 and allotments have been made over the last few days.

Response from high net worth individuals had been lower than expected in the public offer of IPCL.

According to data available with Kotak Mahindra Capital Company, the high net worth individuals have applied only 0.83 times of shares earmarked for them. Institutional investors have applied 8.72 times the shares earmarked and retail investors 1.32 times.

While some investors have already received their refund amounts, the refund process would be completed by Wednesday, according to Kotak Mahindra Capital Company.

Retail investors claim that the spread of allotment is not uniform. "I received 65 shares out of the 70 that I had applied for.

A lot of my colleagues, however, got zero share allotments," said Mr Vijay Basrur, a retail investor.

According to brokers there would be some uncertainly on the stock until the allotment procedure is completed. "Investors would wait to see what the status of their allotment is before deciding on investments in the secondary market," said Mr Mitesh Shah of S S Securities.

The stock closed on Monday at Rs 188.20, down 2. 71 per cent from the previous close on the Bombay Stock Exchange.

On the NSE, it dropped 1.4 per cent to close at Rs 190.75.