Bajaj Corp IPO oversubscribed 10.5 times

On robust demand from institutional investors, the Rs 297-crore initial public offer (IPO) of hair oil producer Bajaj Corp was oversubscribed 10.53 times at the end of third day of issue today.

The IPO received total bids for Rs 3.88 crore shares against 36.9 lakh equities on offer for subscription, as per the data available with the National Stock Exchange (NSE).

In the portion blocked for qualified institutional buyers (QIBs), the issue was oversubscribed 20.19 times, the NSE data showed.

Today was the last day of bidding for QIBs. The IPO closes tomorrow for retail and non-institutional bidders.

Bajaj Corp has come out with the issue of 45 lakh shares, including shares reserved for anchor investors, in the price range of Rs 630-660 a share.

However, so far today, the issue remained under-subscribed in the portions reserved for HNIs (39 per cent) and retail (40 per cent), according to the NSE data.

Out of the net proceeds from the issue, the company aims to use Rs 220 crore for promotion of future products in the personal care segment and the rest for acquisitions and other strategic initiatives.

Bajaj Corp is the second largest company in the Shishir Bajaj Group of companies.

The company manufactures and markets five major brands. The flagship brand, Bajaj Almond Drops, is the market leader in the light hair oil segment, with a 50 per cent market share in FY'09, according to Crisil Research.

Kotak Mahindra Capital Company is the sole book running lead manager to the issue.

Meanwhile, steel pipes maker Prakash Steelage's Rs 68.75 crore IPO will open tomorrow. The company is entering the capital market with an issue size of 62.50 lakh equity shares of Rs 10 each in the price range of Rs 100 and Rs 110 apiece.

The issue will close on August 9 for QIB bidders and on August 10 for retail and HNIs.

The objects of the issue are, among others, to raise resources to part finance its expansion plan at the company's existing manufacturing facility at Umbergaon, Gujarat and also to meet the additional working capital requirement, it said in a statement.

At present, the company carries out production through its two production units situated at Silvasa and Umbergaon (Gujarat).

The IPO will constitute 35.71 per cent of the post issue paid-up capital.

Keynote Corporate Services is the sole book running lead manager to the issue.