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Amidst a slew of IPOs getting called off this year owing to poor market conditions, the IPO of Speciality Restaurants managed to get oversubscribed by two and a half times on Friday. However, the retail individual investor portion was under-subscribed by 0.5 times the total meant for the category.
According to the BSE Web site, the cumulative bids received on BSE and NSE were 254.34 per cent of the total issue size. The total number of shares bid for were 2.53 crore against the total of 99.78 lakh shares offered. While the qualified institutional buyers' portion was subscribed 4.68 times, the non-institutional investors' portion was subscribed 2.19 times.
The IPO was open from May 16-18 and offered a total of at a price band of Rs 146-155. The issue had received lukewarm response till the second day of the issue receiving subscription of only two per .
Kotak Mahindra Capital Company was the book running lead manager of the IPO.
Senior Executive Director and Head of Equity Capital Markets, Kotak Mahindra, Mr V. Jayasankar said: “The company could announce an issue price of between Rs 150 and Rs 155. The retail portion was not fully subscribed as retail investors are more driven by sentiment than fundamentals.
“Lately a lot of IPOs have not performed well or have got withdrawn, and for the retail investor this means money getting stuck in the banking system for 15 days which has added to their scepticism. Also lately, there has been lot of doomsday stories appearing in the media regarding condition of the markets and the economy which has affected retail investors.”
Unicon Financial Intermediaries, Head of Research, Ms Madhumita Ghosh said: “There were a combination of factors that worked in this IPO's favour. Lately there have been no good IPOs and this comes with a consumption theme and is in the fine dining space where there are no other players. This made this IPO different and innovative. The IPO was also priced reasonably which also worked in its favour.”
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