Markets

VRL Logistics gets best IPO response in eight years

Our Bureau Chennai | Updated on January 23, 2018 Published on April 17, 2015

Issue subscribed 74 times

The initial public offering (IPO) of VRL Logistics received an overwhelming response from investors. The issue was subscribed 74 times on the final day of the IPO.

This is the highest response a public issue has received in the last eight years, beating the Reliance Power IPO (January 2008), which was subscribed about 73 times.

The IPOs of PFC and Zylog Systems (in 2007) were subscribed about 77 times while ICRA’s public issue was subscribed 75 times.

The VRL Logistics public issue received bids for 120.8 crore shares against the total issue size of 1.63 crore shares, cumulative data on the BSE till 1900 hrs showed.

According to Pranav Haldea, Managing Director of Prime Database, which tracks the primary market, there is investor appetite for companies that come out with a reasonable valuation.

The VRL Logistics IPO consisted of fresh issue of equity shares worth ₹117 crore and an offer for sale of 1.71 crore equity shares by NSR-PE Mauritius LLC and the promoters’ family. The company has fixed a price band of ₹195-205.

The institutional portion was subscribed by a little over 26 times on the BSE alone, while the non-institutional block was about 180 times. The retail investors’ portion witnessed a subscription of 5.23 times.

Analysts said the logistics sector is currently the hot favourite for investors. Last year, the Gateway Distriparks-promoted Snowman Logistics’ public issue was subscribed almost 60 times.

The company has raised ₹140.crore by allotting 68.5 lakh equity shares at ₹205 a share to 15 anchor investors, including Franklin India, ICICI Prudential, Eastspring Investments India Equity Fund, DSP Blackrock Small & Midcap Fund, Shinhan BNP Paribas Asset Management, Abu Dhabi Investment Authority and Morgan Stanley Mauritius Co.

VRL Logistics is the fourth company to hit the capital market with an IPO this year. While Inox Wind’s public issue received a strong response from investors, Adlabs Entertainment and Ortel Communications struggled to sail through.

Published on April 17, 2015
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