IntraSoft Technologies, which operates 123greetings.com, saw participation in the droves on its final day of its Initial Public Offering, which closed on Friday. The public issue of 3.7 million shares was subscribed 18.95 times, with bids for 70.123 million shares. With such an enthusiastic response, we would be surprised if the subscription isn’t closed at the upper limit of the offer price, of Rs. 145.
But the real test will be the debut of the stock on the exchanges, and how it fares after its FY10 results are declared. It’s dependency on online advertising, and plans to spend almost 40 percent of the money raised on brand building and promotion, don’t really inspire confidence. How the subscription took place:
Retail investors, expectedly, left it till the last date, with the shares reserved for the segment subscribed 13.5 times at 17.49 million, as compared to the previous day, where they had bid for only 455,360 shares.
A majority of the bids came in from Qualified Institutional Buyers (QIBs) (oversubscribed 21.96 times): at bids for 31.4 million shares, 77 percent of the total shares bid for were from Foreign Institutional Investors. Corporates have bid for 7.15 million shares and individuals besides retail individual investors have bid for 4.78 million shares. Complete details of the bid at the National Stock Exchange.