DB Realty, a Mumbai-based real estate company, has evoked good institutional response with its initial public offering getting subscribed 2.08 times as of Monday, the second day of the offer. The Rs 1,500 crore IPO, with a price band of Rs 468- Rs 486, has already received good response from anchor investors. The majority of reserved portion was subscribed at lower end of the price band by foreign institutional funds such as Janus Capital, which picked up close to 43% of the allocated portion and India Capital Fund (5.14%). “The issue has high quality anchor book  with long only foreign funds taking major  portion. FIIs seem to have invested looking at the promoter’s track record of timely  execution, their experience and the potential  of Mumbai’s real estate market, which is  considered lucrative,” said an investment banker at leading brokerage firm, who wished not to be named. Also, none of the private equity investors who have a stake in the company are exiting through this IPO, which gives further confidence to investors. The IPO, which closes on Tuesday, has garnered 5,52,19,024 bids in response to total issue size of 2,64,95,984 shares with 1,63,114 bids at cutoff price. The exchange data shows that the QIB portion has been subscribed 3.29 times while non-institutional investors bid for 3.15 times the portion reserved for them. Though the retail portion has been subscribed just 0.02 times as on Monday, experts say that most of the retail bids come on the last day of the IPO. The majority of the IPO proceeds (Rs 1,388 crore) would be used to meet construction- and development-related expenses. The company focuses on residential, commercial, retail and other projects, such as mass housing and cluster re-development, and has 25 existing projects covering 60 million square feet.

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