Wonderla Holidays IPO subscribed 42% on Day 1

The initial public offer of amusement park operator Wonderla Holidays was subscribed 42% on the first day of the issue today.

The Rs 180-crore IPO received bids for 51,17,000 share against 1,23,25,000 shares on offer, data available on the NSE till 1700 hrs showed.

Besides, the qualified institutional buyers (QIBs) category was subscribed 0.64 times, while non institutional investors portion was subscribed 0.21 times and retail segment saw 0.28 times subscription, as per the NSE data.

The Bangalore-based firm entered the primary market offering 1.45 crore equity shares (including anchor portion of 2,175,000 equity shares) of face value of Rs 10 each in a price band of Rs 115-125.

At the upper end of the band, the IPO could fetch about Rs 181 crore, while at the lower end, the proceeds would be to the tune of Rs 167 crore.

The offer, the first in the current financial year, will close on April 23.

Wonderla Holidays has raised about Rs 27 crore from anchor investors.

Funds from the issue will be used to set up an amusement park in Hyderabad, the company's third after Bangalore and Kochi, and for general corporate purposes.

Wonderla is promoted by Arun Kochouseph Chittilappilly and Kochouseph Chittilappilly, who founded V-Guard Industries.

The promoters hold a 95.48% stake in the company and the remaining 4.52% is with employees of the firm and group companies.

Wonderla commissioned its first amusement park in Kochi in 2000 and the second in Bangalore in 2005.

Edelweiss Financial Services Limited and ICICI Securities Limited are the book running lead managers to the issue.