MCX IPO: When is the smart money going to come in?
As of now, it is not clear where the smart money is going: the big institutional players and rich individuals are still to pitch in in a big way.
Day Two. Time : 12.30 pm. And the much-awaited and talked about MCX IPO has already been over-subscribed by 1.5 times.
According to the Bombay Stock Exchange BSE website, the Multi-Commodity Exchange has received 8,322,156 offers against the stipulated 5,500,772.
This is good news for the company in particular and the markets in general, as the first big issue since Coal India and MOIL has been received well. This reflects an appetite for quality paper.
However, as of now, it is not clear where the smart money is going: the big institutional players and rich individuals are still to pitch in in a big way.
A break-up of the bidders as shown in the BSE website indicates that the over-subscriptionis largely on account of a strong response from retail investors. A retail investor is one who can apply for a maximum of Rs 2 lakh worth of shares.
The chart below, drawn on data available on the BSE website at the end of Day One shows that retail investors account for 65 percent of the bids made. Qualified Institutional Buyers (QIBs) account for 32 percent of the bids made out of which 40 percent have been made by FIIs (foreign institutional investors) and60 percent from domestic institutions.
Retail investors have already surpassed their quota of shares allocated. As against a quota of 2,162,082 shares, retail investors have applied for 3,238,962. However, the QIB segment is yet to be fully subscribed as of Wednesday evening. Against anallocatedquota of 21,62,083, applications have been received for 16,02,582 shares.
The glaring absentee is that of employees. Against reserved shares of 2,50,000, the company has received applications for 972 shares.
There is nothing alarming in the data yet, as applications pick up speed on the last day of application, especially from high net worth individuals and institutional investors.
Shyam Metalics has raised Rs 270 crore from its 22 anchor investors before the IPO. The price range of Shyam Metalics IPO was Rs 303-306 per share
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