HAL sails through despite HNIs, retailers shunning it

Hindustan Aeronautics’ (HAL) initial public offering was fully subscribed on the last day of bidding on Tuesday. As per last update from the stock exchanges, the Rs 4,198.40-crore public issue, at the upper price band of Rs 1,240 per equity share, was subscribed 0.99 times.

All subscriptions above 90 per cent are considered fully subscribed.

The low turnout of non-institutional and retail individual investors led to the issue banking on the strong support from institutional investors.

The qualified institutional bidders category was subscribed 1.73 times as per the data made available at 7 pm. The non-institutional investors, or high net worth individual, category was subscribed only 0.03 times while the retail individual investors category was subscribed 0.38 times.

HAL IPO, in the price band of Rs 1,215 to Rs 1,240 per share, carries a retail and employee discount of Rs 25 per share.

In the absence of anchor investors in government-owned companies institutional bids came on the last day, it seems.

After the huge response to Bandhan Bank, where anchor investors were allotted shares ahead of the opening of the issue, liquidity seems to have dried up, with three more big public issues opening this month to raise about Rs 5,500 crore.

The issues are from ICICI Securities, Lemon Tree Hotels and Mishra Dhatu Nigam.