Financial Daily from THE HINDU group of publications
Tuesday, Jan 29, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jan 29, 2002 |
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IPOs Markets - IPOs Info-Tech - Telecommunications Bharti Tele IPO records 59 pc demand on day 1 Our Bureau
MUMBAI, Jan. 28 THE initial public offer of Bharti Televentures - the first mega issue in a very long time and keenly watched by the market - brought in demand for 59 per cent of the 18.53 crore shares on offer on the first day of book-building on Monday. Bids were placed for 10.94 crore shares, amounting to Rs 510 crore. This works to an average bid price per share of Rs 46.58. According to figures available with the merchant bankers to the issue, 40 per cent of the bids made were at Rs 47, just Rs 2 above the floor price of Rs 45 per share of face value Rs 10. Bids at Rs 47 were for 4.43 crore shares. The second largest demand was at Rs 45, the floor price itself. Demand at this bid was for 3.07 crore shares. There was demand for 1.37 crore shares at Rs 46 and for 1.55 crore shares at Rs 48. Some scattered bidding happened at Rs 49 and Rs 50. Analysts said that the institutional response to the issue was "staid'', and that the retail response was "wary''. "When the issue is of the size of Rs 800 crore, retail investors appear to be adopting a wait and watch approach,'' said an analyst with a broking firm. This is the first issue in the country which is being conducted entirely through the book-building route. Bids came simultaneously from 20 cities. The bids are available on the Web sites of both the lead book runners, DSP Merrill Lynch and JM Morgan Stanley, updated by the hour. Sixty per cent of the issue is for foreign institutional investors, domestic financial institutions and mutual funds, while 15 per cent is for non-institutional investors such as high net worth individuals and corporates. The remaining 25 per cent has been set apart for the retail investors. The issue closes on February 2, with allocation happening on February 4, and pay-in between February 7 and 13.
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