Navkar Corporation IPO subscribed 14% on first day

The initial public offering (IPO) of logistics company Navkar Corp was subscribed only 14 per cent on the first day of the issue.
The IPO received bids for 39.01 lakh shares compared with 2.86 crore equity scrips on offer, translating into a subscription of 14 per cent day, according to data available with the National Stock Exchange (NSE) till 1700 hours.
Navkar Corp is the 11th company to hit the capital markets this year.
The bidding for the IPO, which begun today, would conclude on August 26. The price band for the issue has been fixed at Rs 147-155 per share.

The company had allotted 1.16 crore equity shares to 15 anchor investors -- Morgan Stanley, Nomura, HDFC MF, SBI MF, Reliance MF, Franklin, IDFC, Sundaram MF, L&T MF, Kotak MF, Prime India, Amundi, Ashbunon India, Abudhabi Investment Authority.
Maharashtra-based Navkar Corp plans to mobilise up to Rs 510 crore by issuing fresh equity shares and rake in up to Rs 90 crore through sale of existing shares.

The funds would be used for capacity enhancement of the Somathane container freight station (CFS), development of the non-notified areas of CFSs and establishment of a logistics park at Valsad in Gujarat.
The issue is being managed by Axis Capital, SBI Capital Markets and Edelweiss Financial Services.

The subscription comes amid the broader market witnessing bloodbath with the Sensex crashing by 1,624.51 points to close at 25,741.56 points.
After a quiet 2014, IPO market is buzzing again as 10 IPOs have already hit the market this year and many others in the pipeline, including popular brands like IndiGo, Cafe Coffee Day and Matrix.
These 10 firms have raised nearly Rs 4,700 crore via IPOs, higher than funds raised in the preceding two years.
A total of six IPOs had hit the market in 2014 and together garnered just Rs 1,261 crore, while in 2013, three companies raked in Rs 1,284 crore through initial share plans.