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Investors cheer public issue of Music Broadcast

Our Bureau Mumbai | Updated on January 13, 2018 Published on March 08, 2017

Avenue Supermarts IPO gets 67% on Day 1

Retail investors are returning to the primary markets in droves if the two public offers of Music Broadcast and Avenue Supermarts are anything to go by. The retail portion of the first, on the IPO’s third day, was subscribed 9.19 times while for Avenue Supermarts, on its first day, subscription was at 0.67 times.

Music Broadcast, which owns and operates Radio City, has pan-India presence with radio stations in 37 cities. It’s the country’s first pure-play radio IPO. It is promoted by Jagran Prakashan. Avenue Supermarts controls the western India-based supermarket chain D Mart.

For Music Broadcast, the QIB subscription was 39.78 times while HNIs and non-institutional investors sent in applications for about 109.14 times the portion set aside for them. The company has fixed a price band of ₹324-333 for its initial share sale to raise up to ₹400 crore in primary capital, while existing investors will sell shares worth about ₹88.5 crore through an offer-for-sale.

On Tuesday, Avenue Supermarts allotted 1.87 crore equity shares at ₹299 a share to 35 anchor investors.

On Day 1, Wednesday, the QIB portion was subscribed 50 per cent while HNIs applied for 15 per cent of their portion. The company wants to raise about ₹1,870 crore by issuing over six crore shares as fresh capital to the public. The offer closes on Friday and the shares are in a price band of ₹295-299 a share.

Published on March 08, 2017
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