The initial public offering of BSE's depository arm, Central Depository Services (India) Ltd., was the most subscribed in over a decade. The IPO was subscribed more than 170 times the number of shares on offer in three days of bidding which ended Wednesday.
Demand for shares of Religare Enterprises Ltd., which listed in 2007, stood at 160.56 times the shares on offer, followed by recent stock market debutant Quess Corp Ltd.
The CDSL IPO received bids for 421 crore shares compared to the 2.4 crore shares put on offer. Demand was led by high net-worth individuals (HNI) who bid for more than 563 times the shares allotted to them.
Qualified institutional bidders bid for 148.7 times the shares on offer for that category, while the retail category was subscribed almost 24 times.
A few HNIs who have applied for the IPO through financing told BloombergQuint that the finance cost was in the range of Rs 84-90. Considering the issue price of Rs 149 and the finance cost, a listing price of Rs 233 would allow these investors to break even.
CDSL's IPO was a pure offer for sale, as the existing shareholders – stock exchange BSE India Ltd, the country's largest lender State Bank of India Ltd. (SBI), Bank of Baroda Ltd. and The Calcutta Stock Exchange – sold around 3.5 crore shares.
The book running lead managers to the offer include Haitong Securities India Pvt Ltd., IDBI Capital Markets and Securities Ltd and YES Securities (India) Ltd. CDSL is the second largest depository in the country.
The first half of 2017 has seen a strong IPO pipeline with 11 companies raising more than Rs 9,000 crore. Of the 11 companies, seven have seen double-digit subscription.
Also Read: CDSL Most Subscribed IPO Of 2017
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