Two small IPOs get fully subscribed

The Initial Public Offers (IPOs) of Timbor Home and VMS Industries, which closed on Thursday, were subscribed 5.78 times and 1.36 times, respectively, thanks to good response from retail investors.

Timbor Home, which makes modular kitchens and wooden furniture, received 14.22 times subscription in the retail and 3.22 times subscription in the non-institutional investor (NII) categories, the National Stock Exchange (NSE) website showed. However, the portion reserved for institutional investors, called qualified institutional buyers (QIBs), remained undersubscribed, with bids for 65 per cent of shares reserved.

The price band for the Timbor Home IPO, which had opened on May 30, was Rs 54-63. At the upper band, the company will be able to raise Rs 23.25 crore by issuing 3.69 million shares in the IPO. Corporate Strategic Allianz was the book running lead manager (BRLM) for the issue.

In the case of VMS Industries, the retail category was subscribed 3.41 times, while the NII category received bids for 1.11 times the shares reserved. Interestingly, the portion earmarked for QIBs did not receive even a single bid in the company’s IPO.