UTI Asset Management Company’s initial public offering (IPO) got fully subscribed on the last day of bidding, joining Mazagon Dock Shipbuilders and Likhitha Infrastructure issues that were already oversubscribed by investors. The three IPOs opened for subscription on Tuesday, and have since witnessed strong response from investors. Among these the UTI AMC issue is the largest at Rs 2160 crore followed by the state-run Mazagon Dock and Likhitha Infrastructure being the smallest of the lot. Primary markets have witnessed a rush of IPOs in recent weeks, looking to take advantage of the abundant liquidity in the markets.
The UTI AMC IPO was subscribed by retail investors, employees of the firm and the Qualified Institutional Buyers (QIB). Retail investors bid for their portion of 1,35,75,479 equity shares 2.32 times while the employee portion was subscribed 1.34 times on the last day of bidding. QIB steadily turned up on day three subscribing their quota 3.33 times. Non-Institutional Investors (NII) bid for 92% of their portion. Overall the issue was subscribed 2.30 times. One of the oldest AMCs in India, UTI AMC, will not be getting any receipts as the issue includes only an offer for sale by existing shareholders and no fresh issue.
State-run Mazagon Dock’s IPO was fully subscribed on day one itself and on the final day of bidding the subscription ratio zoomed further with NIIs subscribing their portion 678.88 times. QIBs bid for the issue 89.71 times and retail investor portion was subscribed 35.63 times. Employees also oversubscribed their portion of the issue 3.88 times. With all the categories oversubscribing their portion, the total subscription for the issue stood at 157.40 times.
Retail investors, in large numbers, have been shopping for IPOs in the recent weeks. Similarly, retail investors subscribed to their portion of the Likhitha Infrastructure issue 21.13 times. NIIs too oversubscribed their portion of the issue by 5.39 times. QIBs managed to subscribe just 45% of their portion on the last day.
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