Bajaj Corp IPO oversubscribed 19.2 times

Hair oil producer Bajaj Corp's Rs 297 crore initial share sale offer got a robust response from investors, including retail, and was oversubscribed 19.2 times by the end of issue today.

The IPO, which opened on August 2, saw huge participation from every category of investors, including retail and high net worth individuals.

The public offering received bids for over 7 crore shares against 36.9 lakh equities on offer, as per data with the National Stock Exchange (NSE).

In the portion reserved for retail investors, the IPO was subscribed 6.52 times, while it was oversubscribed by a whopping 53.49 times in the HNI portion, the company said in a statement.

Today was the last day for retail and non-institutional investors to bid for the IPO. The issue closed yesterday for QIBs.

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

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

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.