The initial public offering (IPO) of Bangalore-based Snowman Logistics, promoted by Gateway Distriparks Ltd, has been oversubscribed by more than 60 times, making it one of the successful IPOs in the past few years.
According to latest data from stock exchanges, the qualified institutional buyers (QIB) portion was sold out 17 times, while the high net worth individual (HNI) portion was oversubscribed 222 times. In 2010, the HNI portion of DQ Entertainment’s IPO was oversubscribed 250 times.
The issue received overwhelming response from retail investors who have applied for shares worth over Rs.197 crore, merchant banking officials said. The retail portion was oversubscribed 41.2 times.
Rs.9,000 crore bidsOn the upper price band at which most of the bids have been received, the company would raise Rs.197 crore, officials said. The issue received bids of over Rs.9,000 crore, they added. Bangalore-based companies seem to be the favourites of investors now going by the phenomenal response for the IPO of Snowman Logistics and Wondrela Holidays which was oversubscribed 38 times.
Snowman Logistics had offered to issue 4.20 crore fresh equity shares to raise resources for business expansion purposes. The price band has been fixed at Rs.44-47 a share. This company is into cold chain management having warehouses across the country.
