Stocks

Mazagon gets bids for ₹69,670 crore;Likhitha extends offer as QIBs shun issue

Suresh P Iyengar Mumbai | Updated on October 01, 2020 Published on October 01, 2020

Despite tepid QIB response, Likhitha subscribed 8 times; UTI issue gets 2.3 times

It was a mixed response to the three initial public offerings on the last day of the subscription. While the IPO of Likhitha Infrastructure has been extended as the portion for qualified institutional buyers (QIB) remained under-subscribed, Mazagon issue attracted bids for ₹70,000 crore as against just ₹445 crore on offer.

On the othe hand, UTI Asset Management Company was subscribed 2.3 times.

Likhitha Infrastructure offer was extended till October 7 despite the issue being subscribed by over eight times as the mandatory QIB portion was subscribed only 0.45 times.

The retail portion of Likhitha was subscribed 20 times, while that of non-institutional portion was subscribed five times.

Arun Kejriwal, Director, Kris Advisory, said Likhitha IPO had to be extend as the qualified bidders portion cannot be allotted to anybody else and any extension of the issue should be done with mandatory revision of prices lower. The Hyderabad-headquartered oil and gas pipeline infrastructure service provider, Likhitha, plans to raise ₹61 crore through issue of 51 lakh fresh shares. The proceeds will be used to meet working capital requirements and general corporate purposes.

Mazagon Dock in demand

Investors lapped up the Mazagon Dock shares by placing bids for 480 crore shares against the offer of 3.05 crore shares.

The issue had received highest bids worth ₹69,670 crore against its plan to raise ₹444 crore from the issue.

The non-institutional investor portion received bids worth ₹44,671 crore against reserved portion of ₹66 crore, while that of retail and QIBs got bids worth ₹5,302 crore and ₹19,677 crore against reserved portion of ₹154 crore and ₹219 crore.

A Mini Ratna company, Mazagon Dock Shipbuilders was incorporated in 1934 as a private company which was later taken over by the government under warship development programme and is now India's leading defence PSU under Ministry of defence.

The company is primarily engaged in constructing and repairing warships and submarines and other types of vessels including cargo ships, multipurpose support vessels and barges for commercial clients.

UTI AMC sails through

The public issue of UTI Asset Management Company subscribed 2.3 times as the IPO received bids for 6.25 crore equity shares against offer size of 2.73 crore equity shares.

Shares reserved for retail investors saw 1.53 times applications, while those reserved for HNI investors saw 47 per cent subscription.

The IPO, which had a price band of ₹552-554, had State Bank of India, LIC and Bank of Baroda selling up to 1,04,59,949 equity shares each, while Punjab National Bank and T Rowe Price International divested up to 38,03,617 equity shares each.

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Published on October 01, 2020
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