New Delhi: The share sale of developer Emaar MGF Land Ltd that opened Friday got off to a tepid start despite the company’s decision to reduce the price band for the offering from Rs610-690 to Rs 540-630. Only 16% of the shares on offer were subscribed on the first day, mostly at the lower end of the price band.
Emaar will raise Rs6,457.5 crore at the top end of its new price range.
It revised the pricing in the wake of the volatility in the stock market.
As per information on the website of the National Stock Exchange (at 5pm), the issue, which is looking to sell 102.57 million shares, received bids for 16.48 million shares.
Institutional investors offered to buy 16.40 million of the 61.54 million shares reserved for them, while retail investors sought to buy 86,640 shares of the 30.77 million reserved for them.
“The issue so far has been mostly subscribed at the lower end of the price band,” said an analyst with an international financial services group who didn’t want to be named.
The performance of an initial public offering (IPO) on Day 1 does not have a bearing on the number of shares the company making the issue will be able to sell by the time the IPO closes, but it is usually a good indication of the market’s appetite.
The Reliance Power Ltd IPO, for instance, was sold out in a few minutes. The Emaar MGF issue closes on 6 February.