IN The biggest response to any initial public offering by an Indian company, Adani’s Mundra Port and SEZ (MPSEZ) IPO, the first public issue by a private port, has generated a record Rs 2-lakh crore subscription, surpassing all market expectations.
The issue has been oversubscribed a whopping 115 (114.69) times. The company is aiming to raise Rs 1,771 crore on the higher price band. The number of applications received was 9,50,496.
Earlier, the Power Grid Corporation of India (PGCIL) issue saw a record bid of Rs 1.90 lakh crore. The Adani group company is offering shares to local and overseas investors in a range of Rs 400-440 per share.
“The sentiments in the secondary market are weak and this is very well reflected in the Sensex, which has declined 700 points in the last three trading sessions. Despite this, people have shown such a tremendous response in MPSEZ,” said Saurin Financial Services CEO Saurin Shah.
The proceeds of the issue will be used to part-finance the construction of basic infrastructure in the proposed SEZ at Mundra, besides a terminal for coal and other cargo.
The grey market in Ahmedabad, meanwhile, is quoting at a premium of Rs 450-460 per share and a record Rs 7,000 premium on every form application of Rs 1 lakh, sources said.
Qualified institutional buyers have given strong support to the issue as the reserved portion for them was oversubscribed 159.30 times, followed by HNIs who oversubscribed 156 times. The retail investors’ share was oversubscribed 13.04 times.
The issue comprised a reservation of 24,060,000 shares allocated for QIB, 4,010,000 for non-institutional investors, 12,030,000 for retail individual investors (RIIs) and 150,000 for employees.
MPSEZ is primarily engaged in providing bulk cargo services, container cargo, crude oil cargo and valueadded port services, including railway services between Mundra Port and Adipur.
The company has the exclusive right to develop and operate Mundra Port and related facilities until February 2031, pursuant to the concession agreement entered on February 17, 2001, with the Gujarat Maritime Board and the government of Gujarat.
The equity shares of the company, offered through this IPO, are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The issue and net issue will constitute 10.05% and 10.01%, respectively, of the fully-diluted post-issue paid-up capital of the company.
The book running lead mangers to the issue are Kotak Mahindra Capital, Enam Securities, ICICI Securities, DSP Merrill Lynch, SBI Capital Markets, SSKI Corporate Finance and JM Financial Consultants.