 "Navkar Corp IPO oversubscribed on QIB support")
The Rs 600-crore initial public offering (IPO) of Navkar Corporation received nearly three times subscription on the back of huge demand from qualified institutional buyers (QIBs).
Defying weak market condition, the Maharashtra-based logistics company’s 28.6-million-share offering saw nearly 80 million bids.
The demand from individual investors, however, remained lukewarm. The high networth individual (HNI) quota remained undersubscribed at 90 per cent, while the retail segment saw 1.6 times subscription.
Navkar had priced its IPO in the Rs 147-155 range. The company plans to use the IPO proceeds to expand operations.
Ahead of its IPO, Navkar had raised nearly Rs 180 crore from 15 anchor investors including Morgan Stanley, Nomura, HDFC MF, SBI MF and Reliance MF. At the upper end of the price band, Navkar Corporation was valued at 23 times its 2015-16 earnings per share.
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