The Hindu Business Line : Deccan Aviation's IPO receives 11-12 pc of total subscription

Deccan Aviation, the promoters of Air Deccan, has said that the total number of applications it has received so far for its initial public offering was between 11 per cent and 12 per cent of the total subscription on offer.

An official with Air Deccan told Business Line that most of the institutions kept away on Monday because of the volatile market conditions.

"We expect large QIBs (qualified institutional bidders) to subscribe tomorrow, the last day of the offer," he said.

The official said as per SEBI guidelines, in the book building process, 50 per cent has to be reserved for the QIBs while the rest, which constitutes high net worth individuals and the retailers can be underwritten.

In the case of Deccan Aviation, the rest of the subscription has been underwritten by Enam and ICICI Securities.

"We received large applications from retailers today, though there was not much activity from institutions because of the prevailing market conditions," the official said.

Air Deccan Managing Director, Capt G.R. Gopinath, said the company expects subscription to pick up on Tuesday. He said that the response to his road show for the initial public offering of the company was overwhelming.

Capt Gopinath said he met over 100 fund manager during the 15-day road show. "We met fund manager from Fidility, Prudential and even smaller companies who were extremely enthusiastic about our issue," he said. He said fund managers did not feel perturbed about the Sensex crash as they believed that the market was due for a correction. He said most of the fund managers raised issues like whether there will be a shakeout in the airline industry in India. "They were keen to know how many of them will survive the shakeout," he said.

Deccan Aviation's offer for 2,45,46,000 equity shares with a price band of Rs 150 and Rs 175 per share with a face value of Rs 10 will close on Tuesday.