VRL Logistics IPO subscribed 74 times

Issue sees more than 1.2 billion bids worth Rs 25,000 crore, on strong demand from all investor categories

The Rs 460 crore-initial public offering (IPO) of VRL Logistics got a massive 74-times subscription, with strong demand from all categories of investors. The 16.3 million share float of the country’s leading road freight transport operator saw about 1.2 billion bids, worth nearly Rs 25,000 crore.

Market experts said investors were lured by the company's strong growth potential. Good listing day returns by some recent IPOs added to the optimism.

The category meant for institutional investors was subscribed 58 times and the retail segment saw seven times subscription.  The portion for wealthy individuals was subscribed 250 times, indicating a huge amount of leveraged bets.

VRL had priced the IPO between Rs 195 and Rs 205 a share but given the demand, the issue is likely to be priced at the top end.

Earlier this week, VRL had raised around Rs 170 crore from 15 anchor investors, largely mutual funds, at Rs 205 each.

The logistics sector is expected to grow 12-15 per cent annually over the next three years, on expectation of economic recovery, lack of capacity in the railways and improved road infrastructure. VRL issue was priced at discount to its peers like Transport Corporation of India.