IOC OFS gets through despite Monday Massacre

Published on Monday, August 24, 2015 by Dilip Davda | Modified on Friday, November 1, 2019

IOC OFS that opened for online bidding on Monday i.e. 24.08.15 has passed through hard time as the market collapsed by nearly 6% and all counters were in red due to heavy sell-off from across the board.

Despite such disaster, IOC OFS got little over 1-time subscription. Retail portion, however, remained heavily undersubscribed indicating that panic in the market kept them away from bidding. IOC had offered 242795247 shares to dilute 10% stake of GoI in the company.

Cumulative Bid Quantity (AS ON Aug 24 2015 3:30 PM)

Total Cummulative Bidded Qty	Subscription	% of Total
Total	28,74,45,801	118.39%
100% Margin	2,16,11,625	8.90%
0% Margin	26,58,34,176	109.49%

Non Retail Portion	Subscription	% of Total
Total	27,85,58,707	143.41%
100% Margin	1,27,24,531	6.55%
0% Margin	26,58,34,176	136.86%

Retail Portion	Subscription	% of Total
Total	88,87,094	18.30%

Non Retail Section

Indicative Price (Rs.): 387.00

LTP: 378.25

The indicative price has been the same as floor price announced for this OFS. Based on the last traded price, investors have ended with a notional loss on their investment on day one for non-retail investors. For retail investors, due to 5% discount, based on indicative price, their investment cost per share will be around Rs. 367.65 and thus, they have been the gainers.

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About Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

2 Comments

2. Raj kumar

| Link|August 26, 2015 10:43:43 AMReply

I want to get know that if I bid @ 395.30 for 40 shares in retailer, I got share @ 375.95 Why it so when they give 382, after 5% discount it should be 367. AM I right? or not please suggest. My broker saying that it is not the case.

1. Thiagarajan Ramasamy

| Link|August 25, 2015 9:09:29 AMReply

As the Retail Investors have burned their fingers in PFC and Dredging Corp OFS, Govt should consider introducing Safety Net mechanism for the benefit of Retail Investors and in the interest of future PSU Disinvestment. Let Investor Associations take up this matter with SEBI.

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