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The intial public offerings of Nuvoco Vistas Corporation and CarTrade Tech managed to subscribed fully on the last date of the issue on Wednesday. The ₹2,998.51-crore IPO of CarTrade was subscribed by 20.29 times, while Nirma group company Nuvoco saw issue getting 1.71 times.
What is interesting is that retail investors who were rushing to invest in IPOs till recently have turned cautious. Portion reserved for retail investors in CarTrade was subscribed by 2.75 times and Nuvoco was under-subscribed at just 0.73 time.
According to analysts, back-to-back IPOs squeezed margin funding and hence this low response. Last week, four companies including Devyani International and Krsnaa Diagnostics hit the primary market successfully.
Even high net worth individuals or non-institutional investors portion in Nuvoco got a tepid response of just 0.66 time. However, CarTrade saw a robust response of 41 times.
Portion reserved for QIBs was subscribed 35.45 times and 4.23 times respectively for CarTrade and Nuvoco. Nuvoco issue comprised a fresh issue of ₹1,500 crore and an offer for sale of ₹3,500 crore at a price band of Rs 560-570 a share. Ahead of the issue Nuvoco had raised ₹1,500 crore from anchor investors from over 40 investors. Proceeds from the issue will be used to repay/prepay/redeem borrowings availed by the firm fully or partially and general corporate purposes.
Complete OFS
CarTrade IPO came at price band of ₹1,585-1,618 a share. Since the public issue of 1.85 crore shares is a complete offer for sale by existing selling shareholders, the company will not receive any fund from IPO proceeds. CarTrade Tech had raised ₹900 crore from anchor investors ahead of its initial public offering on Friday.
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