Thursday 15 November 2007

Edelweiss IPO subscribed nearly 6 times

The initial public offer (IPO) of brokerage firm Edelweiss Capital of Thursday got subscribed by nearly six times on the very first day of its issue.

The issue received bids for 4.87 crore shares as against 83.86 lakh shares on offer, latest data available on the Bombay Stock Exchange show.

The price band for the issue, which was subscribed 5.81 times, has been fixed between Rs 725-825 per share. The offer would close on November 20.

The issue got robust response from investors with Qualified Institutional Investors subscribing 8.39 times and the Non-Institutional investors subscribing 8.49 times.

The company is planing to raise about Rs 700 crore of which for Rs 378 crore would be utilised for strengthening operations of its unlisted securities arm Edelweiss Securities Ltd (ESL) and Rs 57 crore would be used in its own operations.

The company proposes to fix issue price on November 27 and the listing would take place in the second week of December.

Kotak Mahindra Capital, Citigroup and Lehman Brothers are the book running lead managers to the issue.

Source: Economic Times

Posted by Harsh at 10:52

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