Thursday, June 14, 2007

Vishal sells out, DLF awaits retail buyers

Vishal Retail Ltd’s initial public offering, which closed on Wednesday, was subscribed 68.06 times, according to data on the National Stock Exchange website. The Rs100 crore public offering from the retailer, which has annual sales of Rs603 crore, had been overshadowed this week by Rs9,625 crore public offering from the Delhi-based real estate developer DLF Ltd, which also opened on Monday.

DLF’s offer was subscribed 1.96 times by Wednesday evening. According to the exchange’s website, orders for 343.4 million shares were received against 175 million shares being sold. DLF’s issue, which has a price band of between Rs500 and Rs550 a share, closes Thursday.

Much of the demand for DLF shares is coming from institutional investors, or so called “qualified institutional buyers”, which include banks, mutual funds and overseas buyers. They have sought to buy 317% of the 104 million shares offered to them. Non-institutional buyers, which includes individuals with high net worth, have subscribed to 49% of the 17.4 million shares on offer to them.

The closely watched retail individual investor group has so far only subscribed to 20% of the 52 million shares set aside for them, though such investors typically wait until the last day, which is Thursday, to put in their bids. DLF’s own employees have also subscribed to 50% of the one million shares set aside for them.

Read more in The Livemint article.

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