InvestorQ : How has been the IPO response for Mazagon Docks and UTI IPOs closed on 01 Oct?
Juvina Maggie made post

How has been the IPO response for Mazagon Docks and UTI IPOs closed on 01 Oct?

Answer
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Deepa Salunkhe answered.
4 weeks ago


Mazagon Dock saw a tremendous response for its Rs.440 crore IPO which closed on 01 October. The IPO was oversubscribed 157 times. Against the offer size of Rs.40 crore, the Mazagon IPO got responses to the tune of Rs.70,000 crore.

The HNI portion alone saw unprecedented oversubscription of 679X. The retail portion was subscribed 4 times while the QIB portion got oversubscribed 90 times. This is record HNI subscription and betters even the IRCTC IPO last year.

The response to the UTI AMC IPO was relatively more tepid. Overall, the Rs.2160-crore IPO of UTI AMC was oversubscribed just about 2.3X. In fact, the HNI portion of the IPO remained undersubscribed at 93%.

UTI is cheaper in valuation terms compared to HDFC AMC and Nippon but investors have been wary of investing in the finance sector as was evident in the Angel IPO also. Also, investors see AMC revenues falling gradually over time as flows move to passive funds.

In a sidelight, the third IPO of Likhitha Infrastructure has been extended till October 7 as the institutional portion remained undersubscribed. Likhitha Infrastructure also had to reduce its price band to Rs.116-120 to attract fresh bids. IPO in Sep-20 collected Rs.7100 crore.