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| Edited By: Sachin P Mampatta |Source: DNA |Updated: Mar 17, 2018, 02:09 AM IST
The IPO of DB Corp, which publishes the Hindi daily Dainik Bhaskar, set a new record for oversubscription after the economic recovery.
The issue was subscribed a whopping 39.54 times, according to data from the National Stock Exchange website, the highest since January 2008 when the Reliance Power IPO was oversubscribed 73.04 times.
Since then, Oil India has been the only other IPO that comes close — it was oversubscribed 30.82 times in September this year.
Market experts said following the example of DB Corp, the onus of attracting retail investors to future IPOs rests with the people who bring them to the market. “There has been a change in the mindset of merchant bankers now… to bring some sanity into IPO pricing, keeping in mind the retail investor,” said Mayank Shah, CEO, Anagram Securities.
Uday Kotak, head, Kotak Investment Banking, said the DB Corp issue heralds a change in India’s IPO market.
The DB Corp offer was priced at Rs185 to Rs212 and looked to raise Rs336-385 crore. Most of the issue proceeds would be used to set up publishing units in new markets. The rest of the money will go towards reducing working capital loans and prepayment of term loans.
