The non-institutional investor (NIIs) quota was subscribed 27.72 times. The portion for employees was subscribed 8.48% and qualified institutional buyers saw 3.88 times subscription.
NEW DELHI: After the blockbuster listing of IdeaForge and expectations of an equally positive debut by Senco Gold, retail investors are queuing for the Rs 500 crore issue of Utkarsh Small Finance Bank.
At the end of the second day, the retail portion of the issue was subscribed by a whopping 37 times while total subscription stood at 16 times. As per BSE data, the issue, which will close on Friday, received 1,95,26,93,400 at the end of Thursday against the issue size of 12,05,43,477 shares.
The non-institutional investor (NIIs) quota was subscribed 27.72 times. The portion for employees was subscribed 8.48% and qualified institutional buyers saw 3.88 times subscription. “The recent success of Ideaforge’s listing may have created a fear of missing out (FOMO) among retail investors, motivating them to participate in Utkarsh SFB’s IPO in anticipation of a similarly lucrative listing.
Additionally, the potential within the small finance bank sector, which is seen as a promising opportunity, could also be attracting retail investors,” said Sonam Srivastava – Founder at Wright Research, an investment Advisory Firm. Last week, ideaForge Technology made a stellar debut at Dalal Street and settled 93% higher on the maiden trading session. Shares of Senco Gold, expected to hit the bourses on Friday, were commanding a premium of Rs 125-130 apiece in the grey market, nearly 40% higher from its issue price of Rs 317 per share.
“Appetite for IPOs from retail investors increases with a lag when the secondary markets start attracting capital. Also, the grey markets and premiums increase the appetite for retail participation in the IPOs,” said Anchal Kansal, Research Analyst at Green Portfolio, PMS. Kansal added that when the IPO markets begin to do well, the initial IPOs leave money on the table for investors and this in turn attracts more investors to participate in the subsequent public issues.
Retail portion oversubscribed by whopping 37 times
At the end of the second day, the retail portion of the issue was subscribed by a whopping 37 times while the total subscription stood at 16 times. As per BSE data, the issue received 1,95,26,93,400.