25th Feb 2012 Saturday
After rushing to bet on the initial public offering of Multi-Commodity Exchange (MCX), investors, long starved of maiden issues, will next try their luck in the upcoming share sale of ONGC.
The listing gains from MCX and the money investors make from ONGC's follow-on offer may pave the way for a revival in the primary market. The Coal India issue in October 2010 was the last significant IPO where investors made gains.
The MCX IPO, which closed on Friday, was oversubscribed 54 times, with the retail portion oversubscribed by a record 24 times till 6 pm. Bankers to the issue had to seek extra time from exchanges for uploading investor applications.
The bids from institutions and high net worth investors and corporates were oversubscribed 49.12 times and 150.35 times, respectively. MCX is the first Indian bourse to be listed. Investment bankers believe the success of its IPO will rub off on the proposed ONGCissue expected in early March. But the huge subscription can partly work against many investors, who may end up with only a fraction of the shares they have applied for.
The gains may be thinner for HNI investors, who have borrowed money to make a quick exit minutes after listing - a practice better known as 'first day first show' on Dalal Street. These investors are waiting to find out how the new rule on listing day price cap, which will be tried out for the first time with the MCX issue, works out.
After rushing to bet on the initial public offering of Multi-Commodity Exchange (MCX), investors, long starved of maiden issues, will next try their luck in the upcoming share sale of ONGC.
The listing gains from MCX and the money investors make from ONGC's follow-on offer may pave the way for a revival in the primary market. The Coal India issue in October 2010 was the last significant IPO where investors made gains.
The MCX IPO, which closed on Friday, was oversubscribed 54 times, with the retail portion oversubscribed by a record 24 times till 6 pm. Bankers to the issue had to seek extra time from exchanges for uploading investor applications.
The bids from institutions and high net worth investors and corporates were oversubscribed 49.12 times and 150.35 times, respectively. MCX is the first Indian bourse to be listed. Investment bankers believe the success of its IPO will rub off on the proposed ONGCissue expected in early March. But the huge subscription can partly work against many investors, who may end up with only a fraction of the shares they have applied for.
The gains may be thinner for HNI investors, who have borrowed money to make a quick exit minutes after listing - a practice better known as 'first day first show' on Dalal Street. These investors are waiting to find out how the new rule on listing day price cap, which will be tried out for the first time with the MCX issue, works out.
